List of Plastic Types Exempt from Import Duties for the Next Six Months

The government is providing incentives for plastic raw materials by reducing import duties on plastic raw material imports to 0% for the next six months. This policy is aimed at helping to curb the sharp rise in plastic prices in the country, which has been affected by disruptions in the supply of plastic raw materials or naphtha. Coordinating Minister for the Economy Airlangga Hartarto revealed that the disruption in naphtha supplies due to the closure of the Strait of Hormuz in the Middle East has triggered a 100% increase in plastic packaging prices. “We know that plastic raw material prices have risen by 50% to 100%, and this will certainly affect plastic packaging,” explained Airlangga at a press conference at the Coordinating Ministry for the Economy office in Jakarta, quoted on Thursday (29/4/2026). Airlangga is concerned that this rise in plastic prices will impact food packaging and, in turn, increase food prices. This situation risks triggering food inflation in the future. Therefore, Airlangga emphasised that the government has decided to impose 0% import duties or exempt from levies on the import of several types of plastic packaging. According to Airlangga, there are six plastic raw material products that will receive the 0% import duty incentive. These include, among others, polypropylene plastic products, polyethylene, LLDPE (Linear Low-Density Polyethylene), and HDPE (High-Density Polyethylene). “All of them will be given 0% import duties. However, this is given for a period of six months; after six months, we will see what the situation is like,” he said. At the same time, the government is also providing incentives for LPG, mainly for the petrochemical industry, by reducing import duties on LPG to 0%.