Indonesia
WHY 0% DUTY FAILS THE PLASTIC CRISIS
The national packaging industry believes that the policy of exempting import duties on LPG and plastic pellets to 0% has not been able to address the main problems of high prices and scarcity of raw material supplies in the downstream sector. The Executive Director of the Indonesian Packaging Federation (IPF), Henky Wibawa, explained that the policy has little impact because LPG is not their main energy source, while the global plastic supply is actually disrupted by the conflict in the Middle East. This condition is exacerbated by the lack of domestic stock after the main petrochemical producer, PT Chandra Asri Petrochemical Tbk, experienced force majeure status , so that business players are now forced to rely on imports from China which is considered to have more stable capacity and competitive prices. On the other hand, the IPF urged the government to immediately evaluate trade protection policies such as safeguards and Anti-Dumping Import Duties (BMAD) on PE and PP raw materials, because these policies heavily burden the downstream industry. Henky highlighted the policy imbalance, where import restrictions are still in place even though domestic production capacity can only meet around 50% of national needs. According to him, the government needs to create more conducive and fair regulations for small and medium-sized businesses in the packaging sector, rather than only providing incentives that tend to benefit the upstream sector, such as exemptions from import duties on naphtha. (ICE GIACARTA)
Fonte notizia: Katadata - May 4, 2026
