UNAIR NEWS Rising geopolitical tensions involving Iran, Israel, and the United States in the Gulf region have begun to affect Indonesia檚 domestic economy. The conflict has disrupted global oil supply chains and triggered a sharp rise in plastic prices. By April 2026, plastic prices had increased by 30 to 80 percent, largely because about 60 percent of Indonesia檚 plastic raw materials rely on imports.
Atik Purmiyati, S.E., M.Si., Ph.D., an expert in Cooperative and SME Economics at the Department of Economics, Faculty of Economics and Business (FEB), 51动漫 (UNAIR), explained that micro, small and medium sized enterprises (MSMEs) in the food and beverage sector are among the most affected, due to their heavy dependence on plastic packaging. This situation is particularly challenging for MSMEs that operate with limited capital and human resources, making it difficult to absorb sudden increases in production costs.淭he rise in plastic prices will increase production expenses and could significantly reduce business profits, Dr. Purmiyati said.
Innovation as a key survival strategy
Despite the challenges, Dr. Purmiyati encouraged SMEs to respond through innovation. Several strategies can be implemented, including reducing product volume without raising prices, expanding into new markets, and gradually replacing plastic packaging with environmentally friendly alternatives. Such alternatives include biodegradable materials made from corn starch, sugarcane, cassava (cassava bags), and pineapple fiber. However, the use of sustainable packaging among MSMEs remains limited. Dr. Purmiyati emphasized that wider public education is necessary to encourage both businesses and consumers to adopt environmentally friendly packaging practices.
Educational efforts may include encouraging consumers to use reusable shopping bags, adopting refill systems, and bringing their own food containers. From a behavioral economics perspective, shifts in consumer habits can influence market demand and push producers to adapt to more environmentally conscious preferences. In addition, Dr. Purmiyati suggested that MSMEs collaborate in purchasing eco-friendly packaging materials in larger quantities. Collective purchasing could allow businesses to benefit from economies of scale, making sustainable packaging more affordable.
Multi-sector policy support
From a policy perspective, the government must act as a market regulator to prevent plastic prices from rising further. One key measure is stabilizing the cost of strategic production inputs. This can be achieved by monitoring the distribution chain of plastic raw materials, controlling price speculation, and providing incentives for upstream plastic industries to maintain stable supply. Price stabilization policies should also be accompanied by innovation support programs for MSMEs. These initiatives are important to strengthen consumer purchasing power by controlling inflation while increasing income opportunities for small businesses.
淎ccording to the Integrated Data System for Cooperatives and MSMEs (SIDT-UMKM), SMEs contribute around 6061 percent of Indonesia檚 Gross Domestic Product and account for 97 percent of national employment. However, not all MSMEs have the same resilience. Therefore, collaboration between the government, society, and universities is essential to encourage innovation so that MSMEs can withstand both national and global economic and political shocks, Dr. Purmiyati emphasized.
Author: Yongki Eka Cahya
Editor: Ragil Kukuh Imanto
