The use of single-use plastic bags in Jakarta has been officially banned by the new Governor’s Regulation as of Wednesday, July 1. The regulation requires shopping mall management and traditional markets to use environmentally friendly shopping bags.
This ban is expected to reduce demand for high-density polyethylene (HDPE) film, which is the main raw material of the targeted ‘T-shirt bags'.
The regulation is overseen by the Governor’s Regulation No.142/2019 on the requirement of the use of environmentally friendly shopping bags and the ban on single-use plastic bags.
The plastic bag ban was passed by Governor Anies Baswedan in December of last year, even though the Gubernatorial Regulation (Pergub) itself was drafted in late 2018. The gubernatorial regulation came into effect yesterday after a six-month transition period, during which the government raised awareness about the specifics of the ban.
Pergub 142/2019 includes fines of IDR5-25 million (US$350-1,740) for retailers or vendors that violate the plastic bag ban, as well as administrative sanctions that could come in the form of written warnings, fines, or suspension/revocation of business permits.
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.
