Formulating an Excise Duty on Plastic: A Strategy to Manage Marine Plastic Waste in Indonesia

Okto Irianto (), Kosuke Mizuno, Safri Burhanuddin and Ninasapti Triaswati
Additional contact information
Okto Irianto: Postgraduate Department, School of Environmental Science, Universitas Indonesia, Central Jakarta 10430, Indonesia
Kosuke Mizuno: Postgraduate Department, School of Environmental Science, Universitas Indonesia, Central Jakarta 10430, Indonesia
Safri Burhanuddin: Postgraduate Department, School of Environmental Science, Universitas Indonesia, Central Jakarta 10430, Indonesia
Ninasapti Triaswati: Department of Economy, Faculty of Economy and Business, Universitas Indonesia, Central Jakarta 10430, Indonesia

Sustainability, 2022, vol. 14, issue 23, 1-16

Abstract: Plastic excise duty is one of the programs prescribed to combat the marine waste problem in Indonesia. This article presents an insight into the formulation of the government regulations needed to implement plastic excise duty. Initially planned to be implemented by 2018, the program is still in the process almost five years later. This article aims to identify the core issues discussed in the process, the stakeholders playing the central role, and their perspectives by interviewing key informants involved in the inter-ministerial committee. This research identified four ministries as definitive stakeholders as representatives of fiscal, industrial, and environmental groups. These groups have distinct interests in five core issues discussed during the negotiation process: the urgency of implementing an excise duty, its goals, scope of implementation, rate of tariff, and the settings for earmarking. This research found that environmental consideration was the central premise during the interministerial negotiation. However, the government’s hesitation to immediately implement an excise on plastic bags shows that currently, the government tends to prioritize economic considerations

Keywords: marine pollution; stakeholders; excise duty; public policy; plastic waste (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/2071-1050/14/23/16287/pdf (application/pdf)
https://www.mdpi.com/2071-1050/14/23/16287/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:14:y:2022:i:23:p:16287-:d:995112

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().