Government Exempts Import Duties on LPG and Plastic Raw Materials

en.malanginspirasi.com  – Coordinating Minister for Economic Affairs (Menko Perekonomian) Airlangga Hartarto stated that for the next six months, starting May 2026, the government has decided to exempt import duties on liquefied petroleum gas (LPG) and plastic raw materials.

“The import duty on LPG has been reduced from 5 percent to 0 percent so that refineries can obtain alternative raw materials from naphtha to LPG, as these refineries need them for plastic production,” said Airlangga Hartarto at a press conference in Jakarta on Tuesday, April 28th, 2026.

“We know that plastic prices have increased by 50-100 percent and this will certainly impact plastic packaging,” he added.

Coordinating Minister Airlangga explained that the implementation of this policy will be regulated through a Minister of Finance Regulation (PMK) and a Minister of Industry Regulation (Permenperin).

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Furthermore, Airlangga stated that raw materials for plastic products such as polypropylene, polyethylene, Linear Low-Density Polyethylene (LLDPE), and High-Density Polyethylene (HDPE) are all subject to a 0 percent import duty.

This decision was taken to prevent price increases for food and beverages that use plastic packaging.

“We’ll see what the situation is like after six months. So, the policy we’re adopting is also being adopted by other countries, such as India. So, we’re following suit to ensure that packaging doesn’t increase the risk of food and beverage ingredients,” said Airlangga Hartarto.

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