<article><p class="lead">The Indonesian government banned single-use plastic bags in Jakarta from 1 July, six months after the regulation was enacted on 31 December 2019. </p><p>The move aims to eliminate the use of single-use bags in supermarkets, department stores and traditional markets.</p><p>This is expected to reduce demand for high-density polyethylene (HDPE) film, which is the main raw material of the targeted ‘T-shirt bags'. </p><p>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.</p><p>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.</p><p>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.</p><p><i>Argus</i> assessed prices of dutiable and duty-free HDPE film at $850-870/t and $890-900/t cfr southeast Asia, respectively, on 2 July.</p><p class="bylines">By Yee Ying Ang</p></article>
