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Jakarta Post

Excise tax: Right step to combat plastic pollution

  • Stefanny O. Simorangkir and I Ketut Dharma Putra Yoga


Jakarta   /   Fri, March 6, 2020   /  10:36 am
Excise tax: Right step to combat plastic pollution Island of plastic: Goats rummage through plastic waste on Panggang Island in Thousand Islands north off Jakarta. The government plans to impose a plastic bag excise tax in a bid to fight plastic pollution. (JP/Wendra Ajistyatama)

The House of Representatives has approved a proposal from the Finance Ministry on the imposition of excise tax on plastic bags in Indonesia, which aims to increase state income as well as reduce the use of plastic bags in the country. The proposal specifically targets plastic bags less than 75 microns thick. The government also plans to impose an excise tax of Rp 30,000 (US$2.10) per kilogram of plastic bags. However, the ministry is still redrafting the policy to include all kinds of plastic packaging The government’s plan to impose the plastic bag excise tax is a progressive step in response to the environmental issues that stem from plastic pollution. According to the Marine Debris Hotspots Rapid Assessment for Indonesia that the World Bank (WB) conducted in 2018, Indonesia ranks second behind China in the world as top plastic polluter. Finance Minister Sri Mulyani Indrawa...

Disclaimer: The opinions expressed in this article are those of the author and do not reflect the official stance of The Jakarta Post.