JAKARTA - The government has exempted the import duty on liquefied petroleum gas (LPG) for the petrochemical industry as well as plastic raw materials as part of the second semester 2026 economic stimulus package.
Coordinating Minister for the Economy Airlangga Hartarto said the policy was taken to reduce production costs and help industry players get alternative raw material supplies to replace naphtha in the midst of global uncertainty.
"The President's instructions with the uncertainty of the situation, then the government provides incentives for the import of LPG and plastic raw materials. Well, the government has set a 0 percent import duty for LPG imports for the petrochemical industry," Airlangga said in a press conference in Jakarta, quoted by Antara, Tuesday, June 23.
The government hopes that this policy can provide economic benefits of up to IDR 2.25 trillion through a reduction in production costs in related sectors.
"With this, (0 percent import tax) is expected to increase the value of benefits for the economic sector by Rp. 2.25 trillion in the form of cost reductions for related industries and multiplier effects or multiplier effects that can be encouraged," he said.
The import tariff for LPG has been reduced from 5 percent to 0 percent to help reduce the price of this commodity. This is because the price of LPG has increased due to the conflict in the Middle East.
In addition to LPG, the 0 percent import duty for plastic raw materials is also expected to help maintain price stability, given that plastic is still the main material for packaging various food products.
Coordinating Minister for Economic Affairs Airlangga considered that the policy was needed to suppress the selling price of plastic products in the country which had recently been affected by the increase in the price of naphtha, one of the derivative products of oil which is the raw material for the plastic industry.
"The government hopes that the presence of this 0 percent plastic raw material will also help with inflation, especially almost all food packaging is wrapped with plastic while we wait for the situation to develop," he explained.
Furthermore, the government also exempted import duties on aircraft parts as part of the same stimulus package.
"The government also continues to encourage the import of aircraft spare parts to be reduced to 0 percent. This is also to support the aviation industry and the MRO industry (maintenance, repair, and operations) so that the competitiveness of the MRO industry can also be improved," explained Airlangga.
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