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Consumers Protest Price Hikes, Beverage Vendors in Cirebon Opt to Reduce Profits Amid Plastic Price Surge

| | Source: MEDIA_INDONESIA Translated from Indonesian | Economy
Consumers Protest Price Hikes, Beverage Vendors in Cirebon Opt to Reduce Profits Amid Plastic Price Surge
Image: MEDIA_INDONESIA

Beverage vendors have raised prices in line with the surging cost of plastic. However, the price increases have been protested by customers.

“I tried raising the price by a thousand rupiah, but customers protested,” said Aeni, 60, a cold beverage seller in the Pasar Pagi area of Cirebon City, on Thursday (9/4). For instance, iced coffee served in plastic cups with straws is now sold for Rp6,000, up from Rp5,000 previously. But, Aeni continued, many customers complained, so the price hike only lasted a day. “The next day, I lowered it back to the original price,” said Aeni.

Aeni admitted feeling annoyed yet sympathetic towards her customers, who are mostly workers and small traders at the market. “Fine, back to the original price. Profits are reduced because plastic, plastic cups, straws, and others have all gone up in price,” said Aeni.

Now, Aeni said her turnover has decreased along with the rising plastic prices and the cancellation of the price increase. Previously, Aeni claimed she could achieve a daily turnover of between Rp250,000 and Rp300,000, but now she is grateful to get Rp100,000 to Rp150,000. “Actually, the plastic price increase started before fasting. But in the last few weeks, it has kept rising. So, it’s high,” said Aeni. Aeni gave an example: one type of plastic that she usually buys for Rp8,000 per pack now costs Rp17,000.

The same issue was expressed by a baso tahu or siomay seller at one of the private campuses in Cirebon Regency. “The plastic price increase is crazy. More than fifty percent,” said Maman, 34. However, since his customers are mostly students, Maman said he doesn’t dare to raise his selling prices.

Maman said he understands that students’ pocket money isn’t much. “So, just as usual. The portions remain the same, prices don’t go up. Poor the students,” said Maman.

The reopening of the Strait of Hormuz is expected to normalise logistics supplies, including plastic prices, according to Industry Minister Agus Gumiwang Kartasasmita.

This increase in capital costs not only erodes profit margins but also has the potential to disrupt business continuity amid declining consumer purchasing power.

UMKM players in Cianjur Regency, West Java, are feeling the impact of rising plastic prices. The increase of 80-100% directly affects production costs.

Plastic prices have risen due to the Iran-Israel-United States war, with raw material supplies disrupted. The plastic price surge becomes a momentum to change habits of using single-use plastics.

Plastic cup packs usually Rp17,000 now Rp27,000 per pack, kresek bags Rp10,000 now Rp15,000 per pack, clear plastic Rp5,000 now Rp7,500 per 100 sheets.

Experiencing a significant price increase, plastic traders have seen a substantial drop in turnover.

The recent plastic price increase serves as an indicator of growing pressure on the global raw material supply chain.

Industry Minister Agus Gumiwang Kartasasmita has spoken out regarding the plastic price rise that is now haunting business actors and consumers.

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