Rising Raw Material Costs Force MSME Owners to Reassess Strategies

The rising market prices of various raw materials have forced MSME operators to find creative ways to survive. They are currently striving to remain resilient while attempting to maintain consumer purchasing power for their products.

Tutin Oktiyanti, an MSME entrepreneur in Indramayu Regency, stated that the current situation presents a significant challenge. According to her, the weakening of the Rupiah is not merely an exchange rate issue, but a matter concerning the very survival of small businesses.

Tutin produces traditional cakes, specifically ‘gabin’, as well as ‘Anandog’, a spiced salted egg specialty from Indramayu.

“The rise in the US Dollar has a profound impact on the economy. As an MSME operator, I am feeling the effects, such as the surge in raw material prices and the potential decline in public purchasing power,” Tutin said on Thursday (4/6/2026).

Tutin noted that the increase in raw material costs is particularly felt in the production of gabin cakes. To ensure the continuity of her business, she has chosen to reduce her profit margins instead of raising selling prices.

“I have to reduce my profits so that the selling price of gabin remains affordable for the community,” Tutin added.

In addition to the rising costs of ingredients for gabin, Tutin is also struggling with the increasing price of plastic, which serves as a vital component in her business operations.