Airlangga Confirms 0% Import Duty on LPG to Apply for 6 Months

The government has decided to exempt import duties on Liquefied Petroleum Gas (LPG) imports as a feedstock for naphtha, which supports plastic products. This policy was conveyed by Coordinating Minister for the Economy Airlangga Hartarto during a press conference on accelerating government programmes to support economic growth, at the Coordinating Ministry for the Economy office on Tuesday (28/4/2026). Airlangga revealed that previously, the import duty tariff imposed on LPG for industrial feedstock was 5%, but it has now been decided to reduce it to 0%. “The 0% import duty is granted for a period of six months; after that, we will assess the situation. This policy has also been adopted by other countries like India to ensure packaging does not raise food prices,” said Airlangga during the press conference on accelerating government programmes to support economic growth on Tuesday (28/4/2026). According to Airlangga, this policy is expected to maintain food prices that use plastic packaging. Thus, it is part of the government’s efforts to control inflation. PT Lotte Chemical Indonesia (LCI) previously requested that the government eliminate the import tariff on LPG as a feedstock for industry. Currently, the 5% tariff burden is considered to hinder the competitiveness of the domestic industry amid the global raw material supply crisis due to conflicts in the Middle East. LCI Corporate Planning General Manager Lee Dae Lo stated that in other countries, such as Singapore, Malaysia, and Thailand, there are no import tariffs for companies importing LPG from abroad. “In other countries like Singapore, Malaysia, and Thailand, there are no import tariffs for companies importing LPG from abroad. For the competitiveness of the Indonesian industry, I hope that the import tariff on LPG as a feedstock can be changed to 0%,” said Lee in Jakarta on Tuesday (14/4/2026). At the same time, Lee acknowledged a shortage of raw materials. Supplies of naphtha plastic pellets and LPG as main feedstocks are disrupted due to the war in the Middle East region, so the company has had to reduce factory production capacity in Cilegon. LCI is a company that produces basic petrochemical products and their derivatives. The factory located in Cilegon, Banten, processes naphtha raw materials into upstream to downstream products. He hopes the government can also assist with plastic pellet supplies for the domestic industry. This request aligns with the government’s plans to purchase plastic pellet supplies from other countries. “LCI very much hopes that if the Indonesian government can supply naphtha to us, we would be greatly helped by that,” said Lee.