Indonesia: Paid Plastic Bag Policy: Its Concept and Relevance to Pollution-Levy Principles

Abstract

This research aims to determine and analyse the categories of levies in the paid plastic bag policy in Indonesia, and its relevance to pollution levies. Based on analysis, this research comes to the following conclusion: the paid plastic bags policy in Indonesia cannot be categorised as a tax or charge. The main characteristics of taxes or charges are not contained in the policy of paid plastic bags, especially in terms of the legal relationship between the parties. Paying for plastic bags fits in much better with the general concept of a pollution levy. In the context of imposing a cost on consumers, the relevance of this policy to pollution-levy principles could be seen from the attainable objective, namely altering consumer behaviour through pricing. This study contributes to current global literature in the field of the use of the levy concept in the paid plastic bag policy and its relevance to pollution abatement principles.