TEMPO.CO, Jakarta - Coordinating Ministry for Economic Affairs spokesperson Haryo Limanseto expressed hope that duty-free incentives for aircraft spare parts and industrial Liquefied Petroleum Gas (LPG) will ease operational costs for businesses. Lowering these costs will help companies sustain operations, boost efficiency, and stay competitive.
"This policy is part of the government's efforts to maintain economic growth momentum by bolstering the real sector," Haryo said in a statement in Jakarta on Saturday, July 25, 2026, as reported by state news agency Antara.
The tax break is part of the government's Economic Stimulus Package for the second half of 2026. For companies in the maintenance, repair, and overhaul (MRO) sector, a zero-percent import duty now applies to goods and materials used in aircraft servicing. The savings are expected to lower operating expenses, rendering domestic aviation maintenance services far more competitive.
Meanwhile, the zero-percent tariff on LPG imports aims to help petrochemical manufacturers produce raw materials at lower costs. Ultimately, those cost benefits are expected to cascade to downstream industries relying on petrochemical inputs.
The policy is formalized under Finance Ministerial Regulation No. 50/2026, which marks the third amendment to PMK No. 26/PMK.010/2022. Issued on July 15, 2026, the regulation took effect seven days after its enactment. For petrochemical-grade LPG imports, the duty-free status remains valid for six months under tariff lines 9845.10.00 and 9845.20.00.
Implementation guidelines for the MRO sector are detailed under Minister of Industry Regulation No. 16/2026. The decree outlines eligibility criteria and administrative procedures for certified aircraft maintenance firms seeking tariff relief on specialized imported parts.
Eligibility for petrochemical firms accessing duty-free LPG is governed separately under Minister of Industry Decree No. 1944/2026. Qualifying companies importing LPG under HS codes 2711.12.00 and 2711.13.00 can access the zero-percent tariff via codes 9845.10.00 and 9845.20.00.
"Through production cost efficiencies, business players are expected to gain greater room to invest, expand production capacity, and sharpen their competitive edge," Haryo said.
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