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News Wire / economy

Indonesia May Increase Oil Imports From Russia

CNA938 Singapore Jakarta 14d14d Impact 5

Indonesia currently applies import duties ranging from 5% to 15% on plastic products and 5% on liquefied petroleum gas. The volume of imports may be increased by an additional 50 million barrels to fill Indonesian storage systems. This policy aims to establish LPG as an alternative raw material to replace naphtha, which is currently difficult to obtain. The decision specifically targets the petrochemical and plastics sectors. This follows a review of zero-percent subsidies for various polymers including polypropylene, polyethylene, LLDPE, and HDPE. Officials noted that domestic LPG industry development is hindered by limited local production of C3 and C4 raw materials. The government is also considering coal downstreaming as part of its energy strategy. The Indonesian government is considering the removal of taxes on plastic and Liquefied Petroleum Gas (LPG).

Indonesia currently applies import duties ranging from 5% to 15% on plastic products and 5% on liquefied petroleum gas. The volume of imports may be increased by an additional 50 million barrels to fill Indonesian storage systems. This policy aims to establish LPG as an alternative raw material to replace naphtha, which is currently difficult to obtain. The decision specifically targets the petrochemical and plastics sectors. This follows a review of zero-percent subsidies for various polymers including polypropylene, polyethylene, LLDPE, and HDPE. Officials noted that domestic LPG industry development is hindered by limited local production of C3 and C4 raw materials. The government is also considering coal downstreaming as part of its energy strategy. The Indonesian government is considering the removal of taxes on plastic and Liquefied Petroleum Gas (LPG). This move aims to anticipate uncertain global geopolitical conditions and ensure LPG remains available and affordable for the public. The policy is intended to maintain smooth distribution and supply stability despite potential international disruptions. The source noted the policy is a proactive step to manage supply security. The country remains open to purchasing from the United States as well.

Topics

Indonesia import duties petrochemicals

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Sources · 7 independent

CNA938 Singapore

“Indonesia currently applies important duties of between 5% and 15% of plastic products and 5% on liquefied petroleum gas. So by removing these taxes, it could help to increase the supply of plastic as well as the feedstock.”

CNA938 Singapore

“Indonesia slashing import duties on some plastic products and liquefied petroleum gas or LPG, hoping to ease inflationary pressure... removing import duties on packaging plastics and LPG for six months, starting in May.”

CNA938 Singapore

“While Indonesia does cap the price of subsidized fuel, the impact of higher oil prices has been felt elsewhere, particularly in plastic-based goods like bottled water and shopping bags.”

Vesti FM

“Jakarta has decided to continue importing oil, and immediately it will be sent at a special price. And then, maybe, it will be increased by another 50 million barrels.”

RRI Pro 1 Jakarta

“Menteri Koordinator Bidang Perekonomian menyatakan bahwa pemerintah resmi menurunkan tarif bea masuk import LPG dari sebelumnya 5% menjadi 0%.”

RRI Pro 1 Jakarta

“Selain hilirisasi batu bara, pemerintah juga mengkaji penggunaan gas alam terkompresi, atau CNG sebagai substituasi.”

RRI Pro 1 Jakarta

“Saya sendiri melihat langkah ini sebagai upaya pemerintah untuk antisipasi kondisi global yang lagi gak menentu, kondisi geopolitik juga gak menentu. Yang penting bagi masyarakat, LPG-nya tetap tersedia, harganya juga masih tetap terjangkau.”

RRI Pro 1 Jakarta

“Merespon kondisi tersebut, Pemerintah mengambil langkah dengan membibahaskan BIA masuk impor LPG menjadi 0%. LPG didorong sebagai alternatif penggantin nafta terutama untuk industri petrokimia dan kilang.”

Vesti FM

“He, in general, told him, as they say, thank you, Russia. And this volume of supplies will be absolutely sufficient for Indonesia to meet all demands.”

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