Indonesia waives import duties on aircraft parts, petrochemical LPG

Photo caption: Technicians repair an aircraft engine at the Garuda Maintenance Facility (GMF) AeroAsia hangar, Soekarno-Hatta Airport, Tangerang, Banten, Wednesday (April 15, 2026).

Jakarta (ANTARA) - The Indonesian government has introduced a zero-percent import duty on aircraft spare parts and liquefied petroleum gas (LPG) used as feedstock for the petrochemical industry.

The incentives are part of the government’s Economic Stimulus Package for the second half of 2026.

Haryo Limanseto, spokesperson for the Coordinating Ministry for Economic Affairs, said in a statement on Saturday that reduced cost burdens are expected to help businesses maintain operations, boost efficiency, and remain competitive.

"This policy is part of the government's efforts to maintain economic growth momentum by strengthening the real sector," he noted.

For the Maintenance, Repair, and Overhaul (MRO) industry, the zero-percent import duty applies to goods and materials imported for aircraft maintenance and repair. 

The incentive aims to reduce operational costs, making domestic aircraft maintenance services more competitive.

Meanwhile, the zero-percent import duty on LPG is expected to help the petrochemical industry produce raw materials more cost-effectively, benefiting downstream industries that rely on petrochemical products.

The policy is regulated under Minister of Finance Regulation Number 50 of 2026, issued on July 15, 2026, which took effect seven days after its promulgation.

The zero-percent tariff on LPG imports for petrochemical feedstock applies specifically for a period of six months.

Implementation details for the MRO industry’s import duty facility are outlined in Minister of Industry Regulation No. 16 of 2026, which sets out the criteria and procedures for aircraft repair and maintenance service providers to access the fiscal incentive.

Regarding LPG imports, the criteria are set out in Minister of Industry Decree No. 1944 of 2026. 

Qualified firms importing LPG under HS codes 2711.12.00 and 2711.13.00 will receive a zero-percent tariff under tariff headings 9845.10.00 and 9845.20.00.

“Through production cost efficiency, industry players are expected to have more room to invest, increase production capacity, and enhance competitiveness,” Haryo said.