Import duty waivers proposed in Indonesia for PE and PP

28-Aug-09

The Industry Ministry in Indonesia has proposed a waiver in import duties or 2010 about 26% higher than the Rp 1.336 trillion allocated in the 2009 state budget. This added waiver amounts to over Rp 1.68 trillion (about US$167.5 mln) as recommended to the Finance Ministry. 13 industries are expected benefit from the additional waiver and improve business performance to help boost the economy. Among the 13 industries proposed, 7 have been enjoying the fiscal incentives estimated at Rp 335.85 billion this year under the same scheme. They comprise automotive industry, electronics, shipping industry, the machine tools industry, sorbitol production, telecommunications, the informatics industry and ballpoint pen production. Of the 5 new industries included in the proposed 2010 list eligible for waived import duties, polyethylene and polypropylene are included. This category includes PE and PP which are yet to be manufactured locally to be used for plastic packaging; polyethylene and polypropylene already produced locally but yet to meet locally required specifications.