Government Issues 0% Import Duty Incentive for Aircraft Spare Parts and LPG
The government is providing 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.
Coordinating Ministry for Economic Affairs spokesperson Haryo Limanseto said that with lower cost burdens, businesses are expected to maintain their activities, improve efficiency, and remain competitive. “This policy is part of the government’s efforts to maintain economic growth momentum by strengthening the real sector,” Haryo said in a statement in Jakarta on Saturday (25/7/2026).
For the maintenance, repair, and overhaul (MRO) industry, the 0% import duty applies to goods and materials used in aircraft maintenance and repair processes. Through this incentive, the operational costs of MRO companies can be reduced, making domestic aircraft maintenance services more competitive.
Meanwhile, the 0% import duty on LPG is expected to help the petrochemical industry produce raw materials more cost-efficiently. Ultimately, the benefits can also be felt by other industries that use petrochemical products as raw materials.
The policy is stipulated in Minister of Finance Regulation (PMK) Number 50 of 2026 concerning the Third Amendment to PMK Number 26/PMK.010/2022. The PMK was enacted on 15 July 2026 and will take effect seven days after its promulgation. Specifically for LPG imports used as raw materials for the petrochemical industry, the 0% import duty applies for six months through tariff codes 9845.10.00 and 9845.20.00.
The implementation provisions for the import duty facility for the MRO industry are further regulated in Minister of Industry Regulation (Permenperin) Number 16 of 2026. The Permenperin regulates the criteria and procedures for utilising the fiscal incentive in the form of a reduction in import duty granted to aircraft repair and maintenance service companies that import goods and/or materials specifically used for aircraft repair and maintenance service activities.
Meanwhile, the criteria for petrochemical industry companies that can utilise the special scheme for LPG imports as raw materials are regulated in Decree of the Minister of Industry Number 1944 of 2026. Imports of LPG with HS codes 2711.12.00 and 2711.13.00 by companies meeting these criteria will receive the 0% import duty facility through tariff codes 9845.10.00 and 9845.20.00.
“Through production cost efficiency, industry players are expected to have greater room to invest, increase production capacity, and strengthen competitiveness,” Haryo explained.