Ministry of Finance of Indonesia

Indonesia waives import duty on plastic resin for six months

Indonesia's government has set a zero percent import duty for six months on six tariff codes of polyethylene and polypropylene, under Finance Ministry regulation PMK No. 68/2026 enacted 2 October 2026. The move responds to global resin price rises of roughly 43 percent for polypropylene and 28 percent for polyethylene year on year, though industry feedback suggests the exempted grades are mostly liquid-form resin not matching the pellet feedstock used by packaging converters.

Why this mattersThe six-month duty waiver offers limited relief to Indonesian packaging converters, which report that the exempted resin grades do not match the pellet feedstock they use.

• Regulation PMK No. 68/2026, enacted 2 October 2026, sets 0 percent MFN import duty on six tariff codes covering polyethylene and polypropylene for six months.
• Global polypropylene prices rose about 42.79 percent and polyethylene about 27.87 percent year on year as of 13 October 2026, per government data.
• The zero-duty codes cover PE tariff lines 3901.10.12, 3901.10.19, 3901.10.99 and 3902.10.30, and PP lines 3902.10.90 and 3902.30.30.
• Coordinating Economic Minister Airlangga Hartarto says the measure follows presidential instructions to protect domestic industry competitiveness amid rising global raw material costs.
• Industry feedback indicates the exempted codes mostly cover liquid-form resin grades not matching the pellet-form feedstock needed by downstream packaging, household, agricultural and small-business converters.
• The government plans ongoing monitoring and evaluation of the policy's effectiveness, with Airlangga noting the incentive was issued some time after the coordinating meeting decision.

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