Producers moan about high tariffs on plastic materials

Producers moan about high tariffs on plastic materials

JAKARTA (JP): Plastics producers yesterday spoke out against
high tariff protection for materials which has led to substantial
increases in production costs.

"The main problem is that import duties and surcharges are
also imposed on several derivatives of polyethylene and
polypropylene that have not been produced domestically," Chairman
of the Indonesian Plastics Manufacturer Association (Apindo) A.
Sarbini said yesterday.

He said imports of plastic materials are generally subject to
a duty of 20 percent and a surcharge of another 20 percent.

Sarbini told The Jakarta Post during a break in a seminar on
the plastic industry that the government apparently does not
realize that the high tariffs also affect materials which have
not been produced locally.

The seminar, organized by Apindo in cooperation with the Japan
External Trade Organization (Jetro), featured several Japanese
experts discussing plastic industry management and technology
improvement.

Sarbini said executives of his association have asked the
government to lower import tariffs on plastic materials to
improve efficiency of the domestic industry, so that the
country's products can compete on the world market.

Y. Santo, secretary general of the Indonesian Plastic Industry
Federation, said that the government should also lower import
duties on petrochemicals used to complement materials in plastic
manufacturing.

The government should also lift import duties on machinery
used to manufacture plastic products that have not been made
domestically, he added.

Indonesia exports several plastic products, including
household plastic goods, PVC pipes, plastic packaging and plastic
bags.

The country's exports of plastics reached US$144.79 million
last fiscal year to March.

The country currently has 398 plastic manufacturers with a
total capacity of 763,375 tons per year, employing more than
83,000 people. (05)