Logo of German-Indonesian Chamber of Commerce and Industry
  • News

Indonesia Reduces Import Duties on Selected Plastic Raw Materials to 0%

Indonesia has temporarily reduced import duties on selected plastic raw materials to 0% for six months, starting 9 October 2026, to address rising international prices and support domestic manufacturers.

Indonesia Reduces Import Duties on Selected Plastic Raw Materials to 0%

Indonesia has introduced a temporary 0% Most Favoured Nation (MFN) import duty on selected plastic raw materials under Ministry of Finance Regulation (PMK) No. 68 of 2026. The measure came into effect on 9 October 2026 and will apply for six months.

 

The policy follows rising international plastic prices. According to the Coordinating Ministry for Economic Affairs, polypropylene prices increased by 42.79% year-on-year, while polyethylene prices rose by 27.87% as of 13 October 2026.

What This Means for Businesses

According to the Coordinating Ministry for Economic Affairs, the regulation sets the MFN import duty at 0% for six tariff lines covering the following materials:

MaterialTariff CodesNew MFN Duty
Polyethylene (PE)3901.10.12, 3901.10.19, 3901.10.99, 3902.10.300%
Polypropylene (PP)3902.10.90, 3902.30.300%

 

For companies exporting these materials to Indonesia or importing them for manufacturing, the measure lowers the applicable MFN import duty. However, it only covers products falling under the six specified tariff classifications. Other import taxes and charges may still apply.

 

The Coordinating Ministry for Economic Affairs has also acknowledged feedback from manufacturers that some materials covered by the exemption do not match their production requirements. The government has stated that it will continue reviewing the implementation of the measure.

In categories:

Read the latest news

See all News
  • News Indonesia Announces Revised Halal Certification Timelines and Planned Revocation of Foreign Product Regulation
    News

    Indonesia Announces Revised Halal Certification Timelines and Planned Revocation of Foreign Product Regulation

    Indonesia has announced adjustments to mandatory halal certification deadlines for several product categories and the planned revocation of a regulation concerning foreign halal products entering the country.

  • News Siemens Switchgear_Cover
    News

    Powering Progress: Siemens Indonesia Expands Pulomas Switchgear Facility

    Fifty years of German-Indonesian engineering collaboration just reached a new milestone. Siemens Indonesia has officially expanded its historic switchgear manufacturing facility in Pulomas, East Jakarta, reaffirming a deep-seated commitment to local production, economic partnership, and future-ready infrastructure.

  • News President Prabowo Calls for PLN Restructuring and Acceleration of 100 GW Solar Power Plan
    News

    President Prabowo Calls for PLN Restructuring and Acceleration of 100 GW Solar Power Plan

    President Prabowo Subianto has called for the restructuring of state-owned electricity company PLN to improve efficiency and accelerate the implementation of Indonesia's 100 GW solar power programme.

Searching for something else?

In our information centre, you can find the latest news, downloads, videos, podcasts...

Go to Info Hub