Indonesia Cuts LPG, Plastic and Aircraft Parts Import Duties to 0%, Targeting Rp2.25 Trillion Gain
Updated
Updated · Tempo.co English · Jun 22
Indonesia Cuts LPG, Plastic and Aircraft Parts Import Duties to 0%, Targeting Rp2.25 Trillion Gain
3 articles · Updated · Tempo.co English · Jun 22
Summary
Indonesia has waived import duties on LPG for petrochemical use, plastic raw materials and aircraft spare parts under its second-half 2026 stimulus package.
The LPG tariff was cut from 5% to 0% to ease production costs and offset price pressure after Middle East conflict pushed up global LPG prices.
Airlangga Hartarto said the plastic raw-material waiver is meant to give manufacturers alternatives to naphtha and help contain inflation because plastic remains the main food-packaging material.
The government estimates the package will deliver up to Rp2.25 trillion in economic benefits through lower industrial costs and multiplier effects, while the aircraft-parts waiver is aimed at boosting aviation MRO competitiveness.