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Businesses divided over plastic excise plan
The government is waiting for approval from the House regarding a plan to impose a plastic bag excise of about Rp 30,000 (US$2.20) per kilogram or Rp 200 per piece.
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Plastic men: Two people dressed up in used plastic bags participate in a plastic bag diet campaign during Car Free Day on Jl. MH Thamrin, Central Jakarta in December, last year. (The Jakarta Post/P.J.Leo )
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usinesspeople are divided over a government proposal to impose an excise on plastic bags, which is currently being deliberated by the House of Representatives.
Representing the local manufacturing sector, Tommy Tjiptadjaja, chairman of the Association of Indonesia Green Industry and Society (AMIHN), voiced his support of the excise plan despite his initial doubts.
“We on the industrial side have opened our eyes and understand that the externalities of this excise go beyond the state revenue,” Tommy told a press briefing on Friday. “Because in reality, we still do not have a proper culture, system or infrastructure to overcome this plastic trash issue.”
He further emphasized that the excise would not serve as the only solution to the issue, advising stakeholders to keep that in mind in order to make the plan more agreeable.
Tommy also expressed his belief that the excise would not be too much of a burden on the supply chain of plastic bags, given the relatively low excise imposed on the goods.
The government is waiting for approval from the House regarding its plan to impose a plastic bag excise of about Rp 30,000 (US$2.20) per kilogram or Rp 200 per piece.
The Finance Ministry has estimated that the plastic excise could bring additional revenues of about Rp 500 billion to state coffers. However, it said that the main purpose of the plastic excise was not to collect revenue but to reduce the use of plastics, which have caused serious environmental problems.
