Prices of Goods Soaring, Modern Retail Boss Requests This from Factories

Prices of Goods Soaring, Modern Retail Boss Requests This from Factories

Jakarta, CNBC Indonesia - Domestic retailers are beginning to devise strategies to cope with the price surges that have already occurred at the producer level. One measure being taken is to raise prices gradually so that the impact on consumers is not felt too drastically.

Himpindo General Chairman Budihardjo Iduansjah emphasised that the current price increases are unavoidable. However, business players are seeking ways to make the price adjustments more gradual.

“Indeed, this (price increase) cannot be avoided. In this regard, Hippindo applies… we appreciate it if factories can provide special prices first to consumers. Thus, we still have time to arrange gradual price increases,” Budihardjo told CNBC Indonesia on Wednesday (15/4/2026).

He explained that price pressures are coming from upstream, starting from raw materials to factory-produced goods. The impact is widespread across various product types, not just textiles.

“Yes, raw materials have (risen), factories have already imposed price increases. Not just from textile raw materials, but we in retail are receiving price hikes from electronics, plastic products, household items, to electrical appliances. Everything is rising, because everything requires plastic, right,” he said.

In this position, the retail industry can only adjust and negotiate with producers. The goal is to create a time buffer before the full price increases are passed on to consumers.

“That’s the position of the retailers, our buyers. We are negotiating, but we understand that these raw materials will raise the price of goods, and we are offering opportunities like special prices for the first orders so consumers are not shocked. That’s what we are negotiating,” he stated.

With this strategy, retailers hope that public purchasing power will remain stable amid the widespread price rises. Gradual adjustments are seen as key to preventing the market from experiencing too severe a shock in a short time.

Previously, APSyFI General Chairman Redma Gita Wirawasta stated that the textile and textile product (TPT) industry is increasingly pressured by raw material prices due to the Middle East conflict that has pushed global oil prices to around US$110 per barrel.

“The price of paraxylene, the main raw material for polyester, is now at US$1,300 per tonne, up around 40% from two weeks ago. This price increase has not yet fully reached the downstream industry,” he said on Tuesday (7/4/2026).

“The domino effect caused by the rise in textile raw material prices will impact gradually over the next three weeks. In the next week, this price increase will be distributed to fabric producers, and in the following two weeks, it will reach the ready-to-wear clothing sector,” Redma continued.

It does not stop there, he added; price adjustments will continue to the retail sector. Unavoidably, there will be price increases for finished goods in retail.

“Retail sector increases are estimated to be around 10%,” he said.