Petrotahlil - The Indonesian government banned single-use plastic bags in Jakarta from 1 July, six months after the regulation was enacted on 31 December 2019.
The move aims to eliminate the use of single-use bags in supermarkets, department stores and traditional markets.
This is expected to reduce demand for high-density polyethylene (HDPE) film, which is the main raw material of the targeted ‘T-shirt bags'.
Quantifiable impacts of the ban have not manifested at this early stage but the ban is likely to exert considerable pressure on HDPE film demand in the Indonesian capital.
It remains unclear if the ban can be effectively implemented in traditional markets, especially during the Covid-19 pandemic. The greater emphasis on hygiene and popularity of meal takeaway options during the pandemic have boosted demand for single-use plastic bags and HDPE film in Indonesia.
Indonesia meets its HDPE demand through supplies from domestic plants operated by Lotte Chemical Titan and Chandra Asri, as well as from the import market.
Argus assessed prices of dutiable and duty-free HDPE film at $850-870/t and $890-900/t cfr southeast Asia, respectively, on 2 July.
Source : Argus