Plastic Prices Rise, Coordinating Minister for Economic Affairs Airlangga Says Government is Preparing to Import LPG with Zero Import Duty

JAKARTA - Coordinating Minister for the Economy Airlangga Hartarto said the increase in plastic prices in the country was influenced by the price of oil. Because, plastic raw materials are still related to oil-based commodities.

This was conveyed by Airlangga after a limited meeting with President Prabowo Subianto at the Presidential Palace Complex, Jakarta, Friday, May 22.

"Because of the price of oil. All oil-based commodities have changed in price," said Airlangga.

Airlangga said Indonesia actually already has many plastic factories. He said polypropylene and polyethylene factories are already available in the country.

"Plastics, there are many factories in the country. Polypropylene, polyethylene, there are many factories in Indonesia," he said.

Polypropylene and polyethylene are plastic raw materials that are widely used for packaging, bags, bottles, and various industrial products.

Airlangga also said that plastic is made from naphtha. Naphtha is a petrochemical industry raw material used to produce various types of plastic.

To help supply industrial raw materials, the government has prepared a policy on importing LPG with zero import duties. According to Airlangga, the policy is being processed at the Ministry of Finance.

"One of them is plastic made from naphtha. One of them is allowed to import LPG with zero import duties. This is in the process at the Ministry of Finance," said Airlangga.

Apart from the issue of plastic, Airlangga touched on the association of entrepreneurs' requests regarding policy transparency. He said transparency would be carried out through a system.

"Transparency is yes by system. It is regulated by the system," he said.