Surge in Plastic Prices Pressures SMEs, Government Formulates Response Strategy

The surge in plastic prices due to geopolitical unrest in the Middle East is beginning to hit micro, small, and medium enterprise (MSME) actors. In response, the Ministry of Cooperatives and SMEs is coordinating across ministries to formulate steps to safeguard the continuity of small businesses. MSME Minister Maman Abdurrahman revealed that his office has received reports and aspirations from MSME actors regarding the increase in prices of product packaging materials. “There are already complaints and aspirations conveyed to us that the need for plastic materials for their product packaging is now starting to rise,” Maman told reporters on Monday (6/4). According to him, the increase is triggered by the soaring global crude oil prices, which are the basic material for plastic derivative products. “We have checked the implications of why it can rise; one of them is because one of the raw materials for making plastic is a derivative product from oil, and that ultimately impacts the rise,” Maman stated. As a quick step, Maman has instructed his ministry’s ranks to immediately communicate with the Ministry of Trade. The focus of the discussion will target supply stability and solutions to the rising prices that are increasingly burdening MSME production costs. “Whatever it is, it’s being discussed regarding plastic; I can’t explain the answer like what yet. But wait for it after further discussions,” Maman said. “I think it’s too early for me to give an answer. Even though we already know what the steps are like, I think let this first become a discussion in the echelon 1 and echelon 2 teams,” he added. The US-Israel war with Iran is impacting the skyrocketing prices of various types of plastic in Indonesia, including in Bangka Belitung Province (Babel). Prices of plastic-based products have risen since early April 2026 due to disruptions in raw material imports from the Middle East. Apindo views that the increase in plastic raw material prices has exceeded normal fluctuation patterns, even in some cases rising more than 100%. Pure raw material plastic is sold at Rp23,000 per pack, up from the previous Rp15,000 per pack. The rise in plastic prices in recent days is starting to be complained about by business actors and the public. The government emphasises continuing to promote People’s Business Credit (KUR) financing as the main instrument to enhance MSME competitiveness. Amid global economic uncertainty, micro, small, and medium enterprises (MSMEs) reaffirm their position as the main foundation of Indonesia’s economy. The Ministry of Cooperatives and SMEs continues to discuss with various parties, including the Senen Market thrifting traders’ association, to formulate fair and constructive solutions. MSME Minister Maman Abdurrahman expressed appreciation for Pertamina’s commitment as a state-owned enterprise that consistently nurtures and strengthens micro, small, and medium enterprise (MSME) actors. PT Pertamina (Persero) officially opened the 2025 Pertamina National MSME Exhibition SMExpo (Small Medium Enterprise Expo), featuring 51 nurtured MSMEs from various regions.