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.
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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:
| Material | Tariff Codes | New MFN Duty |
|---|---|---|
| Polyethylene (PE) | 3901.10.12, 3901.10.19, 3901.10.99, 3902.10.30 | 0% |
| Polypropylene (PP) | 3902.10.90, 3902.30.30 | 0% |
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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.
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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.
