Indonesia implements zero percent import duty on plastic raw materials

The Indonesian government has implemented a zero percent Most Favoured Nation (MFN) import duty incentive for six specific tariff lines of plastic raw materials. This policy, regulated under Ministry of Finance Regulation Number 68 of 2026, is set to last for six months.

Coordinating Minister for Economic Affairs Airlangga Hartarto stated that the measure aims to bolster national industrial competitiveness and maintain production cost efficiency amid rising global prices. Data from October 13, 2026, shows that international prices for Polypropylene increased by approximately 42.79 percent, while Polyethylene rose by 27.87 percent compared to the previous year.

The incentives cover four Polyethylene tariff lines and two Polypropylene tariff lines. The government is currently monitoring the implementation to ensure the benefits reach the intended sectors, such as packaging, household goods, agriculture, and MSMEs. Minister Hartarto noted that current incentives often apply to liquid forms, whereas downstream industries primarily require raw materials in pellet form, prompting ongoing evaluations to ensure the policy meets actual industrial needs.