Page 34 - Plastics News February 2020

FeAtures

Indonesia Revives Excise Plan On Plastics, Vehicles,Sweet Drinks

With an objective of reducing plastics consumption the Finance Ministry’s Customs and Excise Directorate
General is planning to slap a plastic duty of Rp 30,000 per kilogram on plastic producers and importers.

ndonesia is planning to impose an excise on plastics, year, of which 70 percent goes to landfills, 15 percent
Ifossil-fuel vehicles and sweet drinks in a move aimed at ends up in rivers and oceans and only 10 to 15 percent is
reducing their adverse environmental and health effects, recycled. Indofood, Danone and Mayora are the top three
Finance Minister Sri Mulyani Indrawati has said. She said producers of plastic waste in Indonesia, according to The
the planned excise would reduce plastic consumption by Brand Audit Report 2019 by Break Free from Plastic. Top
up to 50 percent, adding the government would likely corporations have joined forces in driving the transition to
receive an excise of Rp 1.6 trillion (US$116.6 million) a circular economy by boosting their recycling efforts to
each year. reduce plastic packaging waste at landfills in the country.

“We are hoping that this will make plastic producers Sri Mulyani also asked lawmakers for approval to impose
transform into producers of environmentally friendly an excise on fossil-fuel vehicles, saying the pollution in
goods,” the minister told House Commission XI overseeing big cities influenced the government’s decision to devise a
financial affairs. Sri Mulyani said the excise only made plan on limiting consumption. “Every vehicle that produces
sense today as it would unify regulations recently issued CO2 emissions is subject to the excise except electric
across the country. Several provinces across Indonesia vehicles, mass transportation and state-owned vehicles, as
well as vehicles for exports,” said the minister, adding
that local producers and importers were subject to
multi-tariff duties.She added the government would
likely receive Rp 15.7 trillion for taxing high-emissions
vehicles. The Finance Ministry is also planning to put
duties on sweet drinks to reduce the number of diabetes
cases in the country, one of the main causes of death
among Indonesians. Sri Mulyani also cited the need for
people to live a healthy lifestyle. "There are a lot of
countries that put duties on dangerous goods including
sweet drinks," Sri Mulyani said. “If approved by the
parliament, we will impose duties on ready-to-drink
beverages and powdered beverages that contain sugar,
excluding non-manufactured drinks and exports.”
The government would impose duties of Rp 1,500 per
liter for packaged tea and Rp 2,500 for carbonated
beverages such as Coca-Cola and energy drinks, she
have announced a ban on plastic bags, the latest ones added. The government was likely to receive Rp 6.25
being Jakarta and Bali, with consumers’ and producers’ trillion from such duties, the minister added. The House's
awareness of sustainable consumption on the rise.
Commission XI has responded to the government's excise
The Finance Ministry’s Customs and Excise Directorate plan by agreeing to immediate duties on plastic bags.
General is planning to slap a plastic duty of Rp 30,000 per "The House's Commission XI requests that the government
kilogram on plastic producers and importers, translating create a road map that expands other new excise objects,"
into Rp 200 duties per plastic sheet. Plastic bags will cost a commission document shows.The Finance Ministry is
Rp 450 to Rp 500 per sheet after duties. The government due to respond to the commission's decision within seven
has been planning to impose an excise on plastics since working days to further proceed with next steps, which
2017 but has yet to receive approval from lawmakers. may include deliberation on the new excise regulation
Indonesia, the world’s second-largest marine polluter, on plastic bags.
accumulates about 1.3 million tons of plastic waste every

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