Policy targets petrochemicals, plastics, and aviation sectors amid global uncertainty
The government has cut import duties on liquefied petroleum gas (LPG) for the petrochemical industry to zero as part of its economic stimulus package for the second half of 2026, aiming to lower production costs and support industrial competitiveness.
Coordinating Economic Affairs Minister Airlangga Hartarto said the measure was introduced under President Prabowo Subianto’s directive to help industries navigate global uncertainty and rising input costs.
“Based on the President’s directive, given the uncertain situation, the government is providing incentives for imports of LPG and plastic raw materials,” Airlangga said.
The LPG import tariff has been reduced from 5% to 0%, while import duties on plastic raw materials have also been eliminated to help contain cost pressures linked to higher global feedstock prices.
According to the government, the policy could generate economic benefits of up to Rp2.25 trillion through lower production costs and wider multiplier effects across related industries.
The stimulus package also includes a zero-duty policy for aircraft spare parts, aimed at strengthening Indonesia’s aviation maintenance, repair, and overhaul (MRO) industry and improving sector competitiveness.