Rising Plastic Prices Prompt Calls for Government Intervention Amid UMKM Pressures and Dilemmas

JAKARTA - A member of the DPR’s Commission VI from the Golkar faction, Firnando Ganinduto, has spotlighted the recent surge in plastic and packaging material prices. This price hike has imposed serious pressure on business actors, particularly in the food and beverage UMKM sector. “The increase in prices, triggered by global supply chain disruptions and the petrochemical industry, not only raises production costs but also has the potential to disrupt the stability of the real economy sector,” said Firnando in a press release on Monday (6/4/2026). Firnando emphasised that this situation must not be allowed to persist without concrete policy responses. According to Firnando, the ongoing surge in plastic prices, which has more than doubled, is squeezing the profit margins of small business operators. Moreover, UMKM operators are in a dilemma because they cannot easily raise selling prices, as this risks losing customers. “This is not just an ordinary price increase but a serious cost pressure on UMKM. If not intervened in promptly, the impact could spread to a decline in the resilience of small businesses and potentially trigger inflation in the informal sector,” he stated. In such conditions, he said, UMKM are the most vulnerable due to limited bargaining power and access to alternative raw materials. In addition, Firnando assessed that the government needs to act swiftly to stabilise the situation through steps such as monitoring the distribution of raw materials and strengthening the domestic petrochemical industry to reduce reliance on global supplies. Firnando also stressed the need to accelerate the procurement of imported raw materials by establishing direct cooperation with major plastic raw material supplying countries. Meanwhile, Firnando also encouraged cross-ministerial coordination to ensure that policies implemented are not merely short-term but can provide sustainable protection for business actors in cases of disrupted plastic raw material supplies. Plastic prices in the market have skyrocketed sharply since the conflict in the Middle East intensified.