The EU's Carbon Border Adjustment Mechanism (CBAM) requires exporters to manage carbon emissions during production and bear corresponding carbon costs. ^[1] Accessing surplus inventory allows businesses to secure competitive modal prices, enabling healthy profit margins without relying on continuous price reductions. ^[2] As of 2026, many Indonesian small and medium enterprises (UMKM) are responding to weak consumer purchasing power by lowering prices, increasing discounts, or participating in flash sales. ^[3] Bank Indonesia data from June 2026 shows that credit for small businesses grew only 1% year-on-year, indicating a shrinking operating space for UMKM amidst high business costs and restrained consumer spending. ^[4] The article states that discounting is not a primary solution because it reduces profit margins when input costs from long distribution chains remain unchanged. ^[5] SMEs are advised to check their product HS codes and EU CN codes to determine if they are subject to CBAM regulations. ^[6] SMEs exporting to the EU must manage carbon emissions not just for direct exports but also for indirect participation in large domestic companies' supply chains. ^[7] The South Korean Ministry of SMEs and Startups is recruiting for the third round of the SME CBAM Response Infrastructure Construction Project. ^[8]