Coordinating Ministry for Economic Affairs (Indonesia)

Indonesia sets zero import duty on key plastic resin inputs for six months

Indonesia's Coordinating Ministry for Economic Affairs confirmed a six-month 0% import duty on six tariff codes covering polyethylene and polypropylene raw materials, under Finance Ministry Regulation No. 68 of 2026, issued 2 October 2026. The move responds to a sharp rise in international resin prices, intended to protect domestic plastics manufacturers' cost base and supply continuity.

Why this mattersThe relief may do little for packaging converters: early feedback cited by officials suggests most covered codes are liquid resins, not the pellet-form PE and PP converters use.

• Regulation PMK No. 68/2026, enacted 2 October 2026, sets 0% MFN import duty for six months on specified PE and PP tariff codes.
• International polypropylene prices rose about 42.79% and polyethylene about 27.87% year-on-year as of 13 October 2026.
• The incentive covers six tariff codes: PE codes 3901.10.12, 3901.10.19, 3901.10.99, 3902.10.30 and PP codes 3902.10.90, 3902.30.30.
• The policy decision was agreed at a ministerial coordination meeting on 28 April 2026.
• Officials say early industry feedback indicates most covered products are liquid-form resins not matching downstream packaging, household, agriculture or SME needs for pellet-form plastic.
• The government plans ongoing monitoring and stakeholder consultation to assess the policy's effectiveness before any revision.

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