Indonesia Slaps Antidumping Duties on Cheap Plastic Imports from China, India, and Thailand

JAKARTA, Investortrust.id — Indonesia has drawn a hard line against cheap plastic imports. The government formally imposed antidumping duties on biaxially oriented polyethylene terephthalate (BOPET) — a versatile plastic film used in food packaging, electronics, and industrial applications — from three of Asia's most competitive exporters: China, India, and Thailand.

The regulation, Ministerial Regulation (PMK) No. 14 of 2026, was promulgated on April 1, 2026, replacing an earlier measure that lapsed. The new rules are the result of an investigation by Indonesia's Antidumping Committee (KADI), which concluded that foreign producers were selling BOPET into the Indonesian market at prices below their home market cost — a practice known as dumping — causing material harm to domestic manufacturers.

BOPET is not a niche commodity. It sits at the heart of modern packaging supply chains, from instant noodle wrappers to pharmaceutical blisters. For domestic plastic producers in Southeast Asia's largest economy, the price gap between locally manufactured film and cheaper imports has been a persistent competitive threat. These duties are Jakarta's answer.

The timing is also critical. Indonesia's plastic industry is simultaneously grappling with a raw material crunch. Naphtha — the primary feedstock for plastic production — is largely sourced from the Middle East, and the ongoing regional conflict has disrupted those supply chains, sending domestic plastic prices sharply higher.

The Tariff Breakdown

The newly implemented antidumping measures target specific plastic products, including plates, sheets, films, foil, and strips, classified under HS codes ex3920.62.10, ex3920.62.91, and ex3920.62.99. These duties are structured as an additional levy applied on top of existing Most Favored Nation (MFN) tariffs or preferential rates established through international trade agreements.

Under this new regime, imports from China face the highest ceiling with rates ranging from 2.6% to 10.6%, while Indian exports are subject to a mid-range band between 4.0% and 8.5%. Meanwhile, Thailand-originated products see the lowest overall adjustment, with duties set between 2.2% and 7.1%.

Rates vary by producer within each country, reflecting KADI's findings on the magnitude of dumping margins for individual exporters. Chinese suppliers face the widest and highest tariff band, with some producers hit with a 10.6% surcharge — a level that could meaningfully price certain Chinese BOPET out of the Indonesian market.

The Raw Material Squeeze

Even as it cracks down on cheap imports, Jakarta is racing to stabilize its plastic supply chain from the other direction. Trade Minister Budi Santoso confirmed this week that naphtha imports — the key upstream input for plastic production — have been severely disrupted by the Middle East conflict, triggering price spikes and scarcity across the country.

"These past few days we've received many complaints about rising plastic prices. This is part of the impact of the war. One key raw material for plastic is naphtha, and we import it from the Middle East," Trade Minister Budi Santoso, speaking at the Presidential Palace complex, April 1, 2026.

The Ministry of Trade has directed its overseas trade attachés to actively scout alternative suppliers. India, the United States, and several African nations are under consideration as replacement sources. The minister acknowledged that the shift won't happen overnight: realigning established procurement channels takes time, and supply disruptions are already cascading through the system.

Critically, Indonesia is not alone. The minister confirmed that major industrial peers — including China, South Korea, Singapore, Taiwan, and Thailand — are also contending with naphtha shortages stemming from the same conflict.

The Long Game: Circular Economy

Beyond the immediate trade clash, Indonesia is betting big on building a more resilient domestic plastics ecosystem. The National Development Planning Agency (Bappenas) — the government's long-term strategy ministry — has embedded plastic circular economy targets into the National Medium-Term Development Plan (RPJMN) 2025–2029, alongside a roadmap stretching to 2045.

The numbers highlight just how much ground needs to be covered. Indonesia generates 5.5 million metric tons (12.1 billion pounds) of plastic waste annually, but only 22% is collected for recycling. Recycling plants operate at roughly 40% of capacity, with most facilities concentrated on the island of Java.

To close the gap, the government is running the Plastic Circularity Investment Initiative (PCII) in partnership with the Global Green Growth Institute (GGGI) — backed by South Korean government funding. PCII analysis pegs the annual investment requirement at Rp308 trillion ($19.4 billion), including Rp18.6 trillion ($1.2 billion) specifically for the plastics sector.

Bappenas Secretary-General Teni Widuriyanti pointed to the global bioplastics market — valued at $20.2 billion in 2024 and projected to grow fivefold within a decade — as a core opportunity. In ASEAN alone, she noted, more than 80 investments totaling $1.59 billion have flowed into early-stage circular economy companies.

"The challenges remain significant, but with strong regulation, incentives, and international collaboration, Indonesia has the potential to become an attractive market in the circular plastics industry," Widuriyanti said.

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