Indonesia Eliminates Import Duties on Aircraft Parts and Industrial LPG to Boost Business Competitiveness

Indonesia is implementing a significant economic stimulus measure by removing import duties on aircraft spare parts and industrial Liquefied Petroleum Gas (LPG). This strategic move aims to alleviate cost burdens for businesses, thereby supporting economic growth and enhancing the competitiveness of key sectors.

Haryo Limanseto, spokesperson for the Coordinating Ministry of Economic Affairs, expressed optimism that the duty-free imports would allow businesses to sustain operations, boost efficiency, and remain competitive. "This policy is part of the government's effort to maintain economic growth momentum through strengthening the real sector," Haryo stated.

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This policy is part of the government's effort to maintain economic growth momentum through strengthening the real sector.

The initiative, included in the Second Half Economic Stimulus Package for 2026, offers a 0% import duty for goods and materials used in the Maintenance, Repair, and Operations (MRO) or overhaul of aircraft. This is expected to lower operational costs for aviation MRO companies, making domestic aircraft maintenance services more competitive.

Similarly, the removal of import duties on LPG for the petrochemical industry is anticipated to reduce production costs for essential raw materials. The benefits are expected to ripple through various industries that rely on petrochemical products. The policy is regulated under Ministerial Regulation (PMK) No. 50 of 2026 and specific criteria for petrochemical companies benefiting from the LPG import scheme are detailed in Ministerial Decree (Kepmenperin) No. 1944 of 2026.

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Through efficiency in production costs, industry players are expected to have greater room to invest, increase production capacity, and strengthen competitiveness.