Airlangga: LPG and Plastic Raw Material Imports Tax-Free for the Next Six Months

Coordinating Minister for the Economy, Airlangga Hartarto, has announced that the government will exempt import duties on Liquefied Petroleum Gas (LPG) and plastic raw materials to facilitate the entry of industrial inputs as substitutes for naphtha-based plastic pellets. He explained that this policy is being implemented to tackle supply shortages resulting from geopolitical conflicts, particularly in the Middle East, which have caused domestic plastic prices to surge in recent times. “Import duties on LPG will be reduced from 5 per cent to 0 per cent, allowing refineries to obtain alternative raw materials from naphtha to LPG,” Airlangga stated during a press conference at the Coordinating Ministry for the Economy in Jakarta on Tuesday, 28 April 2026. “Because refineries require plastic raw materials,” he added. He further clarified that a Minister of Finance Regulation (PMK) and a Minister of Industry Regulation (Permenperin) will underpin the policy, which is scheduled to apply for the next six months starting in May 2026. Airlangga added that raw materials for plastic products such as polypropylene, polyethylene, Linear Low-Density Polyethylene (LLDPE), and High-Density Polyethylene (HDPE) will also be fully exempt from taxes or import duties at 0 per cent. He emphasised that the objective is to prevent rises in the prices of food and beverages, which use plastic for packaging. Airlangga acknowledged that similar policies have already been enacted by several other countries, such as India. “As we know, plastic prices have risen by 50-100 per cent, which will undoubtedly affect plastic packaging costs,” Airlangga said. “So we are following suit to ensure that packaging does not drive up the prices of food and beverage ingredients. We will assess the situation after six months,” he concluded.