Sharah, Siti and Nuzulurrahmah, Nurunnisa and Himawan, Irfan S. and Eriswanto, Elan (2026) THE EFFECT OF PLASTIC PRICE INCREASES ON PRODUCTION COSTS AND SMES PROFITABILITY: EVIDENCE FROM A GREEN ACCOUNTING PERSPECTIVE. International Journal of Accounting Innovation, 2 (3). ISSN 3089-5383

Text IJAI_The+Effect+of+Plastic+Price+Increases+on+Production.pdf Download (296kB)

Abstract

Objective: This study aims to analyze the impact of rising plastic prices on production costs and profits of SMEs and examine the role of green accounting as a strategy in addressing cost pressures and sustainability demands. Method: The study used a qualitative approach with a literature review method sourced from scientific journals, articles, and trusted publications. Results: The results show that a significant increase in global oil prices in 2026 will have a direct impact on the price of plastic raw materials, a petrochemical derivative. A 40%–100% increase in plastic prices will increase the Cost of Goods Sold (COGS) and reduce SMEs profits by around 50%. This condition creates economic pressure that increases SMEs' vulnerability to fluctuations in global raw material prices. In facing these conditions, SMEs implement various adaptation strategies through innovation, such as efficient use of raw materials, waste reduction, and the application of the circular economy concept. Novelty: Furthermore, the implementation of green accounting is a strategic solution in identifying and managing environmental costs more effectively. Green accounting not only improves cost efficiency but also strengthens financial resilience and supports business sustainability. However, its implementation in SMEs still faces limitations in terms of understanding and resources. Therefore, support from various parties is needed to encourage the wider adoption of green accounting.

Item Type:	Article
Uncontrolled Keywords:	Oil, Plastic Price Increase, Production Cost (HPP), SMEs Profit, Green Accounting
Subjects:	H Social Sciences
Depositing User:	admin eprints
Date Deposited:	15 Aug 2026 00:03
Last Modified:	15 Aug 2026 00:03
URI:	http://eprints.umsida.ac.id/id/eprint/16970

Actions (login required)

View Item