35 Chapter 4 Result and Discussion 4.1 External Analysis 4.1.1 PESTEL Analysis 4.1.1.1 Politic The Indonesian government requires products sold in Indonesia to have Indonesian National Standard (SNI) certificate. This certification is mandatory for products in certain categories such as electronics, food and beverages, construction materials, etc (Kemendag, 2023). Tumbler products are not falling into this category that require SNI certification making it not highly regulated by the government. This factor allows the market to be entered by local and global brands with ease. Import regulation is also becoming important for global brands to consider going into the Indonesian market and local businesses that import the products from overseas. The Indonesian government has requirements for the products that can be imported such as SNI certificate. Currently since tumbler products are not heavily regulated, the import process can be less strict. However, changes in this regulation by the government will impact the market since the business needs to adjust the pricing strategy to compensate for an additional increase on their import fee. Government initiatives to promote less plastic usage and sustainability can impact the tumbler market since there will be demand for tumblers. One of the initiatives coming from the Bali local government that issued regulations to ban single use plastic usage in government offices 36 and educational institutions in Bali (Detik.com, 2025). As the effect, all government and educational institution employees are required to bring their own tumblers to the offices in stainless steel or BPA-free certified plastics. This regulation can impact the demand of tumblers in Indonesia especially if it expands to other local governments. 4.1.1.2 Economic According to the World Bank (2024), Indonesia’s GDP is expected to remain stable at around 5% from 2024-2027. It is also supported by the strong consumption from both private and government, especially political campaign spending and infrastructure projects in 2024. However, it is still below the target growth from the government at 8%. The economic landscape of Indonesia can be uncertain due to potential trade disruptions and weakening global demand (Reuters, 2025). Indonesia's middle class and nearing middle class segment is currently at around 66% of Indonesia's population that contributes to 81% of household spending in 2024 (BPS, 2024). This indicates the middle class as important in supporting the economy of Indonesia making it an opportunity for business to grow the market in this segment especially for lifestyle brands such as tumbler products. However, there is a decreasing trend on purchasing power for the middle class segment (The Jakarta Post, 2024). In addition, Bank Indonesia also shows that there is a decreasing trend for income to consumption ratio in Indonesia from around 76% to 73% (Kompas, 2024).