Indonesia has exempted six plastic raw material tariff lines from import duty for six months, under Finance Ministry Regulation (PMK) No. 68 of 2026, promulgated on 2 October. The duty rate on the covered lines is set at zero percent under the most favoured nation rate.
Airlangga Hartarto, the minister for economic affairs, said the main urgency was to meet industry’s raw material needs. He said domestic supply conditions and developments in international market prices were both taken into account.
Prices behind the decision
The six lines comprise four polyethylene and two polypropylene tariff lines. International polypropylene prices were 42.79 percent higher as of 13 October 2026 than in the same period a year earlier.
Polyethylene prices over the same comparison were 27.87 percent higher. Plastics feed a wide range of manufacturing sectors and consumer products, the government said.
Industry and policy aims
The government said the policy aims to strengthen national industrial competitiveness. Airlangga said it would keep the sustainability of domestic industry in view while responding to global market dynamics.
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The government will seek input from various parties to ensure the policy is effective and benefits user industries. Airlangga also noted the long gap between the coordination meeting decision and the issuance of the incentive.
Source: Finance Ministry
