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April 28, 2026 | 04:53 pm
TEMPO.CO, Jakarta - Coordinating Minister for Economic Affairs Airlangga Hartarto announced that the government is waiving import duties on Liquefied Petroleum Gas (LPG) to stabilize industrial costs. Previously, imported LPG was subject to a 5 percent tariff.
Airlangga stated that this incentive is designed to allow the industry to pivot from naphtha to LPG as an alternative raw material. "Policy intervention regarding LPG import duties is aimed particularly at the petrochemical industry, which is facing difficulties in procuring naphtha due to the conflict in the Strait of Hormuz," he said during a press conference at his office in Jakarta on Tuesday, April 28, 2026.
At the same time, Airlangga noted that President Prabowo has instructed Energy and Mineral Resources Minister Bahlil Lahadalia to seek alternative naphtha sources. Naphtha remains the primary raw material used by the petrochemical industry to produce plastic.
Furthermore, the government is introducing a 0 percent import duty for plastic packaging raw materials, including polypropylene, polyethylene, high-density polyethylene (HDPE), and linear low-density polyethylene (LLDPE). According to Airlangga, plastic prices have surged by 50 to 100 percent since the outbreak of conflict in the Middle East.
"Therefore, for plastic packaging, as domestic supply is also constrained by naphtha, these products, including polypropylene, polyethylene, HDPE, and LLDPE, will be charged a 0 percent import duty," Airlangga said, noting that this incentive policy will take effect in May and remain in place for the next six months.
Read: Why the Food Industry Needs to Adopt Paper Packaging
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