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Indonesian PP and PE importers informed that up to this moment, there have not been any notice from the government pertaining to the renewal of the BMDTP for the year 2021, which caused heavy speculation that the facility might not be available. 

BMDTP (Bea Masuk Ditanggung Pemerintah) is a government-borne import duty facility that exempts companies from paying import duties for a fixed quantity of cargoes annually. Companied would usually submit the necessary documents by December and approval would take three to four months. 

Sources said that the absence of the BMDTP might affect PP buyers more than PE, as most PP manufacturing plants are older and not registered under the master list – another one-off scheme that entitles manufacturers to 0% import duties of raw materials from all origins when equipping new plants with new machineries.

Although customers in both PP and PE sectors are still securing deep-sea cargoes from origins such as Middle Eastern and USA at the moment, many are turning to parcels that have duties advantages such as ASEAN, China, South Korea, and India. It is important to note that imported PP and PE cargoes to Indonesia from China, South Korea, and India (with Form CO) would only be entitled to lowered duties but not a total eradication of the import taxes. 

There is no confirmation from the government at the moment, however, in the event of non-issuance of the BMDTP for 2021, market players expected demand for PP and PE cargoes from ASEAN, China and South Korea to surge in Indonesia.  

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Indonesia