In 2016, the government tried out a regulation requiring supermarkets and grocery stores to charge a minuscule IDR200 (US$0.015) for every single-use plastic bags the customer used to carry their shopping. The trial, though proven to have somewhat reduced plastic bag use, was not fully implemented and nowadays only a handful of Indonesian retailers still charge for them.
The government is now looking at new ways to limit plastic bag use. The Finance Ministry’s Customs and Excise Directorate General says it’s currently drafting a new tax regulation on plastic bags.
Under the draft, the excise on plastic bags will likely be levied directly on plastic bag producers (though there will undoubtedly be knock-on effects on retailers and customers). Exact figures haven’t been revealed but the producers might get a tax waiver if they create environmentally friendly plastic bags.
“The regulation will be introduced for control. We will push so that plastic production goes towards environmentally friendly plastics,” Customs and Excise Director General Heru Pambudi told Kompas yesterday.
“Those who are environmentally friendly will be taxed lower tariffs or even waived from taxes. We will also give incentives to companies who focus on recycling.”
Heru added that the regulation has been discussed with the House of Parliament and that the government will soon be able to issue an official Government Regulation to implement it.
A study conducted last year showed that four of Indonesia’s rivers rank among the 20 most polluted in the world in terms of mismanaged plastic waste measured in metric tons. This makes Indonesia the second-largest contributor to marine plastic pollution after China. A recent research article, published in the journal Nature Communications, estimates that between 1.15 million and 2.41 million tonnes of plastic enters the oceans every year from rivers. Of this, Indonesia is estimated to emit around 200,000 tonnes of plastic from rivers and streams, mainly from Java and Sumatra.
