November 21, 2025 | 04:47 pm
TEMPO.CO, Jakarta - The Indonesian Pulp and Paper Association (APKI) has urged the government to reconsider its plan to impose taxes on disposable diapers and wet wipes, warning that the measure could negatively affect both industry players and consumers.
APKI Chair Liana Bratasida said the proposed tax risks reducing industrial competitiveness and weakening public purchasing power.
She noted that the diaper industry forms a crucial part of the national pulp and paper supply chain, contributing 3.92 percent to the non-oil and gas GDP and generating more than US$8 billion in export earnings in 2024.
Indonesia currently has 17 diaper factories with a combined installed capacity of 17.90 billion pieces. Actual production in 2023 reached 16.47 billion pieces, while national demand in 2024 is projected at 13.1 billion pieces.
“Several factories have closed due to high production costs and market competition. If an additional tax burden is imposed, prices will inevitably rise and supply could further decline,” Liana told Antara on Friday, November 21, 2025.
The government argues that the tax plan supports efforts to reduce marine waste, as outlined in Government Regulation No. 83/2018. Diapers were identified in 2017 as the second-largest contributor to marine pollution, accounting for 21 percent of waste found at sea. Their low recycling rates, driven by complex synthetic materials, have also drawn environmental concerns.
Liana countered that the large volume of diaper waste in the ocean stems from poor waste management rather than the nature of the product itself.
She also highlighted ongoing collaborations between the diaper industry and cement producers, who use diaper waste as a substitute for biomass energy, a move aligned with circular economy principles.
APKI stressed that diapers are not purely plastic products and contain a mix of materials, including pulp, SAP, PE film, nonwoven PP, latex or spandex, and rubber-based adhesives. Many of the plastic components are already subject to the government’s planned plastic tax. Imposing an additional diaper tax, the association said, risks creating a double tax that could erode domestic competitiveness.
APKI also noted that adult diapers are classified as medical devices under the Health Ministry’s licensing system. A new tax, Liana warned, could undermine efforts to boost domestic medical device production.
“If prices rise, consumption will fall, jobs will be affected, and the industry’s contribution to national revenue could shrink. Any policy must balance environmental considerations with industrial and public interests,” she said.
APKI reaffirmed its commitment to supporting the government in drafting targeted, effective, and fair regulations. Industry players are asking the government to reassess the plan by considering broader industrial conditions and public needs.
Meanwhile, Finance Minister Purbaya Yudhi Sadewa has previously assured that no new taxes will be introduced until Indonesia’s economic growth reaches 6 percent, including those on diapers and wet wipes.
“My reference remains the same. I won’t add additional taxes until the economy stabilizes,” he said.
The proposal to tax diapers and wet wipes emerged following the issuance of Finance Minister Regulation No. 70/2025, which outlines the Ministry of Finance’s 2025–2029 strategic plan.
The regulation states that the ministry is studying potential expansions of taxable goods, including diapers, disposable tableware, and wet wipes, as part of broader efforts to increase revenue.
Although the regulation was signed on October 10, 2025, Purbaya said the plan will not be implemented in the near future.
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