Indonesia Waives Import Duties on Plastic Raw Materials for Six Months
The Indonesian government has implemented a six-month 0% import duty on specific plastic raw materials to support domestic manufacturers. This policy aims to mitigate the impact of rising global prices for polyethylene and polypropylene.
Why it matters
This move highlights how emerging economies are using trade policy to protect domestic industrial supply chains from volatile global commodity markets.
October 15, 2026 | 6:05 am SHARE URL berhasil di salin. A plastic trader in Ngawi, East Java, shows his products on April 1, 2026. (B-Universe Photo/Muhammad Miftakul Falakh) Jakarta. Indonesia has introduced a six-month exemption from import duties on selected plastic raw materials to help domestic manufacturers cope with soaring international prices and maintain their competitiveness, Coordinating Economic Affairs Minister Airlangga Hartarto said Wednesday.
The measure, established under Finance Ministry Regulation No. 68/2026, which was promulgated on Oct. 2, temporarily reduces import tariffs on certain polyethylene and polypropylene products to 0%.
Airlangga said the policy followed President Prabowo Subianto's instructions to safeguard domestic industries against volatile global market conditions and rising raw material costs.
"The main priority is to meet the raw material needs of domestic industries while taking into account local supply conditions and developments in international market prices," Airlangga said in a statement.
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