Indonesia: Government targets Rp 500b revenue from plastic excise

The Finance Ministry’s Customs and Excise Directorate General targets Rp 500 billion (US$34.20 million) in state revenue from a plastic excise set to take effect starting next year, although the legal basis for the policy is still being discussed.

Customs and Excise Directorate General revenue head Rudy Rahmaddi said all the relevant parties in the government had agreed to the policy, and the draft was now in the final discussion in the government before it would be taken to the House of Representatives for approval.

Rudy said a government regulation would form the legal basis for the new measures, as mandated by Article 4, Paragraph 2 of the Customs Law.

“We also have the results of a feasibility study on the collection of a plastic excise. Currently, we need to harmonize the draft [across ministries and government institutions],” said Rudy in Jakarta on Thursday, as reported by

He noted that the collection of the excise, according to the initial plan, would have started this year, but it was delayed because of differences among the government offices.

Meanwhile, the Indonesian Plastic and Olefin Industries Association (Inaplas) still rejects the enforcement of a plastic excise.

Inaplas deputy chairman Suhat Miyarso khawatir said the policy would negatively affect the investment climate in the country as a burden on investors.

The government has stressed that the objective of a plastic excise is not aimed at increasing state revenue, but is part of the effort to reduce plastic waste by 30 percent by 2025. (bbn)