Soaring Plastic Prices Leave SME Operators in a Dilemma
JAKARTA, KOMPAS.com - The soaring prices of packaging plastic are becoming a burden for small and medium enterprise (SME) operators, especially those in the food and beverage business.
Without government intervention, traders are currently in a dilemma akin to eating the simalakama fruit. Sellers who do not raise product prices amid the plastic price increase risk profit shrinkage.
On the other hand, traders who raise product prices due to the increase in packaging plastic costs also risk losing customers.
Slamet (56), an angkringan trader in Sleman, D.I. Yogyakarta, said that the plastic price rise after last Eid has become an unexpected additional expense.
As an angkringan trader, the need for clear plastic to wrap ice and fried foods cannot be separated. Moreover, he also has to provide kresek plastic for larger purchases.
“This clear plastic was Rp 36,000 before Eid, yesterday I bought it for Rp 42,000,” he said when met by Kompas.com.
Nevertheless, he did not immediately raise the prices of ice or food at his angkringan due to the packaging plastic price increase.
He admitted he would bear the plastic price rise even though it erodes his daily sales profit. He hopes the plastic price will return to its previous level.
“Well, just let it be, hopefully the price will drop again,” he said.
Meanwhile, Tari, a laundry entrepreneur in the Sleman area, also complained about the same issue. She said the laundry plastic price increase feels heavier when buying in large quantities.
Tari usually buys laundry clothing wrapping plastic in large quantities for Rp 800,000 per pack weighing up to 20 kg.
“Now the price can reach Rp 1.2 million,” she said.
Meanwhile, Teguh, a cart pempek seller in the Kemandoran area, South Jakarta, also acknowledged that this plastic price increase is a burdensome factor.
He explained that the plastic, which was previously Rp 6,000 per small pack, can now reach Rp 10,000.
“Yesterday it rose by Rp 2,000 per day, I don’t know why it could be like that, even though it’s the most suitable plastic,” he said.