JAKARTA. The Indonesian government has imposed a 0% import duty on imports of liquefied petroleum gas (LPG). The temporary measure will remain in effect until December 31, 2026.
The policy is stipulated under Minister of Finance Regulation No. 50 of 2026, which was promulgated on June 21, 2026. Through the regulation, the government provides reduced import duty rates on selected goods to support the competitiveness of Indonesia's maintenance, repair, and overhaul (MRO) industry.
"The government needs to provide support through a fiscal incentive policy in the form of a reduction in import duty rates on LPG imports," the regulation states in its preamble.
Specifically, the 0% import duty applies to LPG imports classified under tariff headings 9845.10.00 and 9845.20.00, as listed in Appendix III of Minister of Finance Regulation No. 50/2026. In addition to LPG, the appendix also covers various aircraft parts eligible for the same zero-duty facility.
Lower import duties are among the fiscal instruments frequently used by the government to reduce the cost of importing specific goods. With a 0% import duty, importers are exempt from paying customs duties, lowering procurement costs. The policy is expected to improve production and operational efficiency for businesses that rely on imported goods.
For the maintenance, repair, and overhaul (MRO) industry, access to raw materials and components at more competitive prices is essential to strengthening competitiveness. Through this customs incentive, the government expects to reduce the cost of MRO services in Indonesia, enabling domestic providers to compete more effectively with regional and international MRO companies. The measure is also intended to strengthen Indonesia's aviation industry ecosystem and encourage more aircraft maintenance activities to be carried out domestically.
Minister of Finance Regulation No. 50/2026 also stipulates that the 0% import duty takes effect from the date of its promulgation, June 21, 2026, and will remain valid through December 31, 2026. Businesses that meet the applicable requirements should therefore take note of the policy's validity period to maximize the benefit of the customs facility in accordance with prevailing regulations. (KEN)
