Indonesia plans to remove import duties on some plastic materials and liquefied petroleum gas (LPG) used by the petrochemical industry to ease supply pressures, Reuters reported Tuesday, citing Coordinating Economic Minister Airlangga Hartarto.

The measure, set to take effect in May, comes as domestic plastic prices have surged between 50% and 100% due to disruptions in naphtha supply from the Middle East amid the Iran conflict.

Under the policy, import duties on key raw materials such as polypropylene, LLDPE and high-density polyethylene will be cut to 0% for six months. The duty on LPG imports for petrochemical use will also be reduced to zero from 5% over the same period, reportedly.

Indonesia currently imposes duties of between 5% and 15% on plastic products, and the government will reassess the policy after six months, the news agency said..

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