Import duties on LPG, plastic feedstocks cut to 0 percent

The government is cutting import duties on LPG for the petrochemical industry and on plastic feedstocks to 0 percent in the second-half 2026 economic stimulus package. Coordinating Economy Minister Airlangga Hartarto said the LPG import tariff was reduced from 5 percent to press production costs as commodity prices rise because of conflict in the Middle East. The government estimates the policy will deliver economic benefits of up to Rp2,25 triliun through lower industrial costs and multiplier effects. The 0 percent tariff on plastic feedstocks is also aimed at maintaining price stability, as plastic remains a key material for food packaging and has also been affected by higher naphtha prices. In the same package, the government also exempted import duties on aircraft spare parts to support the aviation and MRO industries.