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Indonesia to Impose Plastic Bag Tax

The Indonesian government will impose duties on plastic bags in an effort to reduce waste.

The Director General of the Finance Ministry’s Customs and Excise Department, Heru Pambudi, has announced that the Indonesian government will impose duties on plastic bags in an effort to reduce waste.

The decision has been based on different factors such as industry players, peoples’ purchasing power, manpower, and the environment. They have made a decision to charge Rp200 per bag.

“The duty could not be too high or too low as we need to balance many factors,” Heru said at the House of Representatives building yesterday. Earlier that day, the ministry held a hearing with House Commission XI overseeing finance on plastic bag duties.

During the meeting, Finance Minister Sri Mulyani stated that the duty on plastic bags will be Rp30,000 per kg, assuming that there are 150 sheets per kg. Hence, the price of plastic bag per sheet should be at Rp450 to Rp500. The new regulation is set to increase inflation by around 0.045 percent. However, Heru added that the duties could not be set too high as it would disrupt several industries. Indonesia also plans to set lower rates for recyclable plastics.

Over the years, the government has aimed to reduce plastic consumption. Bali has recently emerged as the first province in Indonesia to ban the use of plastic bags. Previously, Denmark, South Africa, Taiwan, Ireland, and Malaysia have also imposed duties of 40,000 to 100,000 per kg for plastic bags.

Source: The Jakarta Post
Image: Asia Nikkei

See: Bali Supermarket Receives Positive Feedback for using Plastic Alternatives

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