Indonesia Grants Duty-Free Imports for Aircraft Parts, LPG to Cut Costs

Indonesia is implementing duty-free import incentives for aircraft spare parts and industrial Liquefied Petroleum Gas (LPG) as part of its strategy to bolster the real sector and maintain economic growth momentum. Haryo Limanseto, spokesperson for the Coordinating Ministry for Economic Affairs, expressed optimism that these measures will alleviate operational costs for businesses.

For the aviation industry's maintenance, repair, and overhaul (MRO) sector, the zero-percent import duty on goods and materials used in aircraft servicing is expected to significantly lower expenses. This aims to make domestic aviation maintenance services more competitive on the global stage. The policy is formalized under Finance Ministerial Regulation No. 50/2026, amending previous regulations.

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This policy is part of the government's efforts to maintain economic growth momentum by bolstering the real sector.

Simultaneously, a zero-percent tariff on LPG imports targets petrochemical manufacturers, intending to reduce the cost of producing raw materials. These cost savings are anticipated to benefit downstream industries that rely on petrochemical inputs. The duty-free status for petrochemical-grade LPG is valid for six months. The government believes that by improving production cost efficiencies, businesses will gain greater capacity for investment, expansion, and enhancing their competitive edge.

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Through production cost efficiencies, business players are expected to gain greater room to invest, expand production capacity, and sharpen their competitive edge.