TEMPO.CO, Jakarta - The Indonesian government has waived import duties on liquefied petroleum gas (LPG) for the petrochemical industry and plastic raw materials as part of its economic stimulus package for the second half of 2026.
Coordinating Minister for Economic Affairs Airlangga Hartarto stated that this policy was implemented to reduce production costs and help industry players obtain alternative raw materials to replace naphtha amidst global uncertainty.
"Based on the President's directive, given the uncertain situation, the government is providing incentives for imports of LPG and plastic raw materials. The government has set a 0 percent import duty on LPG imports for the petrochemical industry," Airlangga said at a press conference in Jakarta on Monday.
The government hopes this policy will provide economic benefits of up to Rp2.25 trillion by reducing production costs in related sectors.
"With this, (the 0 percent import duty) is expected to increase the value of benefits to the economic sector by Rp2.25 trillion in the form of cost reductions for related industries and a multiplier effect that can be encouraged," he said.
The LPG import duty rate was reduced from 5 percent to 0 percent to help suppress the price of this commodity. This is because LPG prices have increased due to the conflict in the Middle East.
In addition to LPG, the 0 percent import duty on plastic raw materials is also expected to help maintain price stability, given that plastic remains the primary packaging material for various food products.
Coordinating Minister Airlangga believes this policy is necessary to suppress domestic plastic product prices, which have recently been impacted by the rising price of naphtha, a petroleum derivative used as a raw material for the plastics industry.
"The government hopes that this 0 percent import duty on plastic raw materials will also help with inflation, especially since almost all food packaging is wrapped in plastic while we wait for developments in the situation," he explained.
Furthermore, the government is also waiving import duties on aircraft spare parts as part of the same stimulus package.
"The government is also continuing to push for a reduction in imports of aircraft spare parts to 0 percent. This also supports the aviation industry and the MRO (maintenance, repair, and operations) industry to further enhance the competitiveness of the MRO industry," Airlangga explained.
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