JAKARTA. The Indonesian government plans to waive import duties on Liquefied Petroleum Gas (LPG) and plastic raw materials, including polypropylene (PP), polyethylene (PE), Linear Low-Density Polyethylene (LLDPE), and High-Density Polyethylene (HDPE).
Coordinating Minister for Economic Affairs Airlangga Hartarto said the measure is intended to ease soaring plastic prices, which have increased by as much as 100%. He added that the proposal is still under discussion within the government.
Six-Month Policy
Quoting InfoPublik.id, the 0% import duty on LPG and plastic raw materials is expected to take effect on May 1, 2026, and remain in force for six months. The current import duty rate is 5%.
To implement the policy, the government is preparing two regulations: a Minister of Finance Regulation and a Minister of Industry Regulation.
Impact of Rising Plastic Prices
According to Kontan.co.id, plastic prices have risen by 80% to 100%. For example, polypropylene (PP) resin prices have reached IDR66,900–IDR102,900 per kilogram, while HDPE resin is priced at around IDR50,000 per kilogram.
The sharp increase has affected economic activities, as plastic remains the primary packaging material for most consumer products. (KEN)
