RRI.CO.ID, Jakarta - Coordinating Minister for Economic Affairs Airlangga Hartarto announced that the Indonesian government has waived import duties on liquefied petroleum gas (LPG) and plastic raw materials. The policy is intended to ease pressure on the petrochemical and plastics industries amid global supply disruptions.

Minister Airlangga explained that import duties on LPG have been reduced from 5 percent to 0 percent. Import tariffs on certain plastic raw materials, previously ranging from 5 to 15 percent, have also been cut to 0 percent.

“The incentive for LPG, specifically, this policy intervention to reduce import duties, is primarily intended for the petrochemical industry, which has faced difficulties obtaining naphtha due to the conflict in the Strait of Hormuz,” Minister Airlangga said at a press conference in Jakarta on Tuesday, April 28, 2026, as reported by Antara.

The government is encouraging refineries to switch to LPG as an alternative raw material through these tariff incentives, given the petrochemical industry’s vital role in the national supply chain, particularly in producing plastic raw materials.

Several types of plastic, including polypropylene, polyethylene, high-density polyethylene (HDPE), and linear low-density polyethylene (LLDPE), are covered by the incentive policy.

Minister Airlangga added that the policy will be in effect for six months, pending the issuance of regulations by the Ministry of Industry (Permenperin) and the Ministry of Finance (PMK). “We’ll see the situation in the next six months,” he said.

In addition to tariff reductions, the government is simplifying the import licensing process. The Ministry of Industry will compile a list of commodities requiring technical review, while the Ministry of Trade will revise import-related regulations.

To ensure transparency and reliability, the government is establishing a service-level agreement (SLA) mechanism. The National Industrial System (Sinas) and Indonesian National Standards (SNI) will also be optimized to clarify licensing workflows and timelines.

Minister Airlangga emphasized that the policy aims not only to maintain industrial supply but also to stabilize prices in the packaging sector, thereby curbing potential price increases in food and beverages.

As a follow-up, the government is exploring alternative import sources from other countries while strengthening domestic production capacity. These efforts are expected to reduce reliance on imports and bolster the long-term resilience of the national industry. ***