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Rising Plastic Bag Prices Pose Challenges for Indonesian Vendors
Chicken seller Budi in Depok, Indonesia, reported that plastic bag costs have nearly doubled, affecting his thin profit margins. This increase highlights broader economic vulnerabilities amid external factors like the Iran war. Indonesia's economy has grown at about 5 percent annually for over a decade.
Apr 24, 8:00 PM·1m read1 source
South China Morning PostAudio version
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Budi, a chicken seller at a market in Depok south of Jakarta, stated in an April 17 interview that he previously allocated 10,000 rupiah, equivalent to 58 U.S. cents, for plastic bags. He now needs at least 15,000 to 20,000 rupiah for the same purpose.
sells chickens for a maximum of 50,000 rupiah per kilogram and operates on narrow margins. He told CNBC Indonesia that not raising prices leads to losses, while increasing them risks losing customers. This situation affects millions of street vendors, market traders, and small food businesses across Indonesia, according to the report.
The price increases occur amid soaring packaging costs linked to the Iran war, which the report indicates hints at deeper economic issues including a contracting middle class and plateauing growth. For more than a decade, Indonesia's economy has expanded at an annual rate of about 5 percent.
The report suggests these developments raise questions about the country's prospects for achieving 8 percent growth.
