Plastic Bag Levy will Slow Down Beverage Industry, Minister Says

TEMPO.CO, Jakarta - Industry Ministry has expressed its concerns that the plans to impose a levy on plastic food packaging and bags will slow down the national beverage industry.

Industry Minister Saleh Husin considered that imposition of a levy will have a widespread impact. Aside from industrial sector, the policy will also have an impact on the implementation of current policies.

He has played down the concerns that plastic food packages can pollute the environment.

“Because plastic bags for beverage of various sizes and forms can be recycled, and we have recycling industry now,” he said in a written statement on Wednesday.

If the levy is implemented, beverage product consumption will decrease while beverage industry and the plastic industry itself will see a slow down. Moreover, almost 70% of plastic packaging for beverage can be recycled.

In addition, the national beverage industry will be less competitive in the wake of Asean Economic Community.

“Our beverage export market in Asean will be taken over by our competitors, whereas our domestic market will tend to slow down. It would rub salt into wounds, so to speak” he added.

On the other side, levy imposition will create a disconnect with the policies that are currently being disseminated and the ones that have already been implemented.

Saleh said that the policies, among others, are ease of doing business through tax incentives in a bid to improve and strengthen national industry structure of upstream industry, intermediate goods industry and beverage industry, as well as government-borne import duties for plastic packages to improve competitiveness.

Industry Ministry data shows that food and beverage industry grew by 7.55 percent in Q1 2016. The growth has boosted non oil and gas industry performance that grew 4.46 percent.

BISNIS.COM