Indonesian Political, Business & Finance News

Small Traders and MSMEs Burdened by Surging Plastic Packaging Prices

| Source: TEMPO_ID_BISNIS Translated from Indonesian | Economy

Small traders and micro, small, and medium enterprise (MSME) actors in the Yogyakarta region are concerned about the skyrocketing prices of plastic packaging in recent times.

The uniform price increase at distributor and wholesaler levels has compelled traders to take difficult measures, from raising selling prices, reducing portions, to charging consumers extra for plastic bags.

“(The price of plastic packaging) has risen at all distributors, starting to feel the increase a week after the news of the war (America-Iran) became prominent,” said Rosi, a mobile snack and juice seller who usually operates in the Malioboro Street area, Yogyakarta, on Tuesday, 7 April 2026.

She revealed that the price hike in plastic packaging has occurred across all wholesale shops and covers all types of packaging products.

Rosi gave an example: for her fruit juice business using disposable bottles, the price has risen by Rp 20,000 per dozen. Meanwhile, thinwall packaging for vegetable or side dish containers has surged by up to Rp 40,000.

This situation has forced her to increase the price per bottle of juice by Rp 2,000 to cover costs, while continuing to explain the situation to her customers.

Yanti, a mobile market snack seller in the same area, said the price increase had actually been creeping in since before Idul Fitri or early March.

However, the current surge has reached nearly 100 percent, where one pack of small carry bags that was previously Rp 3,000 is now Rp 6,000, and medium carry bags have risen from Rp 5,000 to Rp 9,000.

“Today alone, the price has gone up another Rp 2,000,” said Yanti.

The Head of the Industry and Trade Office (Disperindag) of DIY, Yuna Pancawati, revealed that this issue has been a national concern since late March 2026.

Disperindag data shows a price surge of up to double, such as MSME cups that were previously Rp 220 now Rp 440 each. Yuna explained that global logistical disruptions due to the geopolitical situation have caused domestic upstream plastic production to drop to one-third capacity, triggering uniform price adjustments from factory to trader levels.

“The surge in plastic packaging prices is nearly 100 percent, and kresek bags have also nearly doubled,” said Yuna.

As a long-term solution, the Provincial Government of DIY through Disperindag is preparing assistance steps for MSME actors to switch to eco-friendly packaging.

This step includes collective purchasing schemes directly from local producers to cut the distribution chain, as well as utilising local natural fibres such as mendong, pandan, and coconut.

“We are encouraging the use of packaging based on local wisdom, such as natural fibres like mendong, pandan, and coconut, which are abundant in DIY, as substitutes for plastic liners or containers,” said Yuna.

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