Government Releases New Stimulus: 0% Import Duty for Aircraft MRO and LPG

The government has issued Minister of Finance Regulation (PMK) Number 50 of 2026 as part of the Semester II 2026 Economic Stimulus Package. The regulation provides a 0% import duty tariff for certain goods used in the aircraft maintenance, repair, and overhaul (MRO) industry, as well as for Liquefied Petroleum Gas (LPG) used as raw material for the petrochemical industry. Spokesperson for the Coordinating Ministry for Economic Affairs, Haryo Limanseto, explained that this policy is a follow-up to President Prabowo Subianto’s directive to assist businesses in facing global economic pressures that have driven up production costs. With a lower cost burden, businesses are expected to maintain their operational continuity, increase efficiency, and remain competitive. For the MRO industry, the 0% import duty applies to goods and materials used in aircraft maintenance and repair processes. Through this incentive, company operational costs can be reduced, making domestic aircraft maintenance services more competitive. The government also provides a 0% import duty on LPG imports used as raw material for the petrochemical industry. This reduction in raw material costs is expected to help the petrochemical industry produce materials more efficiently, with projected benefits spilling over to other industries that use petrochemical products as production inputs. The policy is regulated in PMK Number 50 of 2026, which constitutes the third amendment to PMK Number 26/PMK.010/2022. The regulation was enacted on 15 July 2026 and will come into effect seven days after its promulgation. Haryo emphasised that the 0% import duty for LPG as a petrochemical industry raw material is valid for six months through specific tariff posts. The implementation provisions for the MRO industry import duty facility are further regulated in Minister of Industry Regulation Number 16 of 2026, which sets out the criteria and procedures for utilising the fiscal incentive for aircraft repair and maintenance service companies importing specific goods. Meanwhile, the criteria for petrochemical companies eligible for the special scheme on LPG imports are regulated in the Decree of the Minister of Industry Number 1944 of 2026. Haryo stressed that this policy is part of the government’s efforts to maintain economic growth momentum by strengthening the real sector. Through production cost efficiency, industry players are expected to have greater room to invest, increase production capacity, and strengthen competitiveness.