Government Eliminates Import Duties on Aircraft Spare Parts and LPG

The Indonesian government has granted a 0% import duty incentive for aircraft spare parts and Liquefied Petroleum Gas (LPG) used as raw material for the petrochemical industry. The incentive is part of the Semester II 2026 Economic Stimulus Package.

A government spokesperson stated that the policy is part of efforts to maintain economic growth momentum by strengthening the real sector. With lower cost burdens, business operators are expected to maintain their activities, improve efficiency, and remain competitive.

For the Maintenance, Repair, and Overhaul (MRO) industry, the 0% import duty applies to goods and materials used in aircraft maintenance and repair processes. This incentive is expected to reduce operational costs, making domestic aircraft maintenance services more competitive.

Additionally, the 0% import duty on LPG aims to help the petrochemical industry produce raw materials more cost-efficiently. The benefits are ultimately expected to be felt by other industries that rely on petrochemical products.

The policy is stipulated in Minister of Finance Regulation (PMK) Number 50 of 2026. For the petrochemical industry, the 0% duty on LPG imports is valid for six months under specific tariff codes. The criteria and procedures for the MRO industry to utilise the facility are further regulated by Minister of Industry Regulation Number 16 of 2026.