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The Indonesian government has introduced Government Regulation (PP) no. 46/2023, amending the Industrial Sector Implementation Regulation (no. 28/2021), effective from September 25, 2023. Notable changes include the utilization of the National Commodity Accounts System (Sinas-NK) for commodity balances to ensure the availability of raw materials. Article 18A emphasizes the continued use of the Commodity Balance Sheet, with additional details to be regulated by Presidential Regulation, acknowledging the need for improvements.

Regarding imports of raw/industrial auxiliary materials, Article 19 outlines conditions for businesses with a valid general importer identification number (API-U). However, limitations apply, and certain materials cannot be imported as per statutory provisions. The government aims to facilitate API-P industrial companies by easing the import of finished goods for complementary purposes, market tests, and after-sales services.

In response, buyers and traders are urged to apply for the PI quota, expected to be implemented next year. “While the exact timing remains uncertain, the government indicates a timeframe of around 90 days post-regulation. Plastic raw materials will be under post-border supervision,” a buyer added. 

Buyers anticipate potential impacts on local pricing for 2024, as the limitation on import volume, contingent on government-approved quotas, may influence market dynamics. Concerns arise, especially for traders, regarding the potential restrictions on the entry of PET, LLDPE, HDPE, PPH, PP Copo, GPPS, and HIPS. Market players emphasize vigilance during the implementation phase.

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Indonesia