Insight

Higher Plastic Prices Are Squeezing Indonesian MSMEs

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Algo Research Team


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Key Summary:


  • Supply shock is driving plastic inflation across Indonesia
  • MSME face margin squeeze with limited pricing power
  • Import dependence exposes industry to external volatility

Geopolitical tensions in the Middle East are not only moving energy markets, but also reshaping everyday living expenses as surging input costs translate to higher prices for consumers.


What’s the buzz? Recently, the Indonesian consumers have started to see meaningful increase in plastic prices as a direct consequence of accelerating oil prices.


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