The Indonesian government has waived import duties on certain plastic raw materials for six months as part of efforts to strengthen the competitiveness of domestic industries. The incentive is stipulated in Minister of Finance Regulation (PMK) No. 68 of 2026, which was promulgated on 2 October 2026.

Coordinating Minister for Economic Affairs Airlangga Hartarto said the new regulation is intended to strengthen the competitiveness of national industries. The plastics industry supplies essential raw materials to various manufacturing sectors and supports the production of goods for public consumption.

“The main urgency is to meet industrial raw material needs while taking into account domestic supply conditions and price developments in international markets,” Airlangga said in a statement on Wednesday, 14 October 2026.

International price data as of 13 October 2026 showed that polypropylene prices had increased by 42.79%, while polyethylene prices had risen by 27.87% compared with the same period a year earlier.

Airlangga said the import duty exemption is expected to help maintain production cost efficiency and ensure business continuity in Indonesia’s domestic plastics industry.

“The government is committed to maintaining the sustainability and improving the competitiveness of national industries through policies that respond to global market dynamics,” he said.

PMK No. 68 of 2026 sets the Most Favoured Nation (MFN) import duty rate at 0% for six tariff lines covering plastic raw materials. These include four polyethylene tariff lines—3901.10.12, 3901.10.19, 3901.10.99 and 3902.10.30—and two polypropylene tariff lines, 3902.10.90 and 3902.30.30.

Airlangga said the government would seek input from various stakeholders to ensure the policy is implemented effectively and that its benefits reach the industries that use the materials.

He also highlighted the relatively long interval between the decision made at a coordination meeting and the issuance of the incentive. According to Airlangga, this interval was necessary to ensure the policy remained relevant to market conditions and could deliver benefits to industrial users.

The six-month exemption is intended to help manufacturers manage rising raw material costs amid international price fluctuations. By reducing import duties on the specified materials, the government aims to support the supply of essential inputs for domestic production while maintaining the competitiveness of Indonesia’s plastics industry.