ASIATODAY.ID, JAKARTA — Indonesia has introduced a new economic stimulus package aimed at reducing industrial costs and strengthening competitiveness by providing zero-percent import duties for aircraft maintenance components and Liquefied Petroleum Gas (LPG) used as raw materials in the petrochemical industry.
The policy, issued through Finance Minister Regulation (PMK) Number 50 of 2026, is part of the government’s second-half 2026 economic stimulus program designed to help industries maintain growth momentum amid rising global production pressures.
The incentive reflects Indonesia’s strategy to support strategic sectors by improving efficiency, encouraging investment, and strengthening the competitiveness of domestic industries within regional and global supply chains.
For the aviation sector, the government has provided a zero import duty facility for selected goods and materials used in Maintenance, Repair, and Overhaul (MRO) activities.
The measure is expected to lower operational costs for aircraft maintenance companies while supporting the development of Indonesia’s aviation services ecosystem. A stronger MRO industry is considered essential as Indonesia expands air connectivity, tourism, logistics networks, and regional economic cooperation across Asia.
The government is also applying zero import duties to LPG used as feedstock for the petrochemical industry. The policy is expected to reduce raw material costs and improve production efficiency for industries that supply essential materials to manufacturing, packaging, construction, and consumer goods sectors.
“This policy is part of the government’s efforts to maintain economic growth momentum by strengthening the real sector. Through production cost efficiency, industries will have greater opportunities to invest, increase production capacity, and improve competitiveness,” said Haryo Limanseto, spokesperson for the Coordinating Ministry for Economic Affairs.
The LPG import duty exemption will be implemented for six months through specific tariff classifications, including HS codes 2711.12.00 and 2711.13.00, for eligible petrochemical companies.
Meanwhile, the implementation of the MRO facility will follow guidelines under Ministry of Industry Regulation Number 16 of 2026, which regulates criteria and procedures for aviation repair and maintenance companies utilizing the fiscal incentive.
Requirements for petrochemical companies eligible for the LPG import facility are regulated under Ministry of Industry Decree Number 1944 of 2026.
The Indonesian government said the stimulus package is part of a broader effort to strengthen the industrial sector, attract investment, expand production capacity, and enhance Indonesia’s role in regional and global supply chains.
By lowering cost barriers in aviation and petrochemical industries, Indonesia aims to build a more competitive industrial ecosystem and maintain economic resilience amid global uncertainty. (AT Network)
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