Determining Incentive in Support of Plastic Recycling Industry in Indonesia

Abstract

Plastic is an inorganic waste that is difficult to decompose, thus causing pollution. In Indonesia, plastic is the second largest type of waste produced. There are various ways that can be done to overcome the plastic waste problem in Indonesia, one of them being recycling. However, there are several factors that influence the development of the plastic recycling industry in Indonesia, tax being one of them. The Indonesian Plastic Recycling Association stated that tax, specifically the imposition of 10% VAT is one of the inhibiting factors for the development of the plastic recycling industry. Therefore, this research aims to determine the form of incentive that can be given to support the plastic recycling industry in Indonesia. The method used in this research is qualitative approach and descriptive research type which conducted from February to July 2020. There are various forms of incentives that already exists in Indonesia according to Act 42 the Year 2009. These incentives exist in the forms of Exempted VAT and non-collected VAT. To obtain incentive, there are various conditions that must be met by the plastic recycling industry. The result of this research shows that the form of incentive that can be given to the plastic recycling industry is non-collected VAT.