Indonesia: Tax amnesty delayed might boost local demand

The Indonesian government last month decided to postpone the discussions to deliberate the tax amnesty bill to at least April and local sellers claimed this move to have positive implication to local petrochemical trading. In fact, players explained that under the tax amnesty, importers are entitled to reimburse a certain portion of custom duties if buying dutiable origins under the Bea Masuk Ditanggung Pemerintah (BMDTP) program. 

“However, buyers are now might consider buying more from local market to avoid capital lock up if tax amnesty delayed further,” a market source commented. A local producer added, “We have been seeing better demand from local PP woven bag maker recently and we think this trend might continue in the near term.”