Confectionery Entrepreneurs Begin to Hold Back on Purchasing Raw Materials, Here's Why

Jakarta, CNBC Indonesia - Pressure on production costs is increasingly felt by small and medium-sized industry players (IKM) amid global turbulence. Rising raw material prices are forcing business actors to change strategies to keep operations running.

“Plastic raw materials are still available, IKM can still obtain them,” said Chairman of the Berkarya Confectionery Entrepreneurs Association (IPKB) Nandi Herdiaman to CNBC Indonesia at JiExpo Kemayoran on Wednesday (15/4/2026).

However, the most noticeable change is in the purchasing pattern, which is now far more cautious than before.

“Now we only shop as needed, not like before when we could stock up a lot,” he said.

The price surge is the main factor changing this behaviour. Business actors must adjust cash flow to remain viable.

“The price of plastic has risen by 95%, almost 100%,” he revealed.

Although prices have skyrocketed, production activities continue because demand has not completely disappeared. This becomes the main support for business continuity.

“As long as the market is still there, we can keep going,” he emphasised.

Amid these conditions, concerns are shifting from prices to a greater risk, namely disruptions in supply.

“What we fear is if prices rise but the goods are not available,” he said.

Changes in the global situation are making business actors even more cautious in managing raw material stocks and distribution. The balance between price and availability becomes a key factor for the industry to keep moving.

“The important thing is that goods remain available for production,” he concluded.