The import quota mandate was officially revoked by the Indonesian government
Indonesia to suspend the implementation of import quota mandate; market participants remained on the look
On 8 March 2024, the Indonesian government signed regulation Permendag No 3 year 2024, officially replacing the Government Regulation (PP) no. 46/2023 and abolishing the import quota mandate on a number of products, including eleven (11) petrochemical commodities.
The new Permendag No 3 year 2024 can be independently put into practice as follows:
1) 11 HS code in sub-section “Bahan Baku Plastik” on the Permendag No 3 year 2024 has been withdrawn from the list except for sub-section 3902.30 – PP Copolymer and 3902.30.90 – Others.
2) There were changes to sub-section clause 3902.30 and 3902.30.90: mandatory obligation for all market players to request for the “persetujuan impor” or import quota and post-border control without the requirement of a surveyor letter for each shipment.
Market participants remained vigilant toward the revised regulations on the concerns that the government might revisit the import quota mandate on the petrochemical sector once local supply grows adequately. Looking ahead, two new PP plants are scheduled to come online in the next couple of years, including Lotte Chemical Titan Nusantara Indonesia’s 250,000 tons/year unit in 2025 and PT Polytama Propindo’s 300,000 tons/year unit in late 2026.