Ministry of Finance Sets Import Tariffs on LPG and Polymers to Zero

The Ministry of Finance (“Kemenkeu”) has drafted technical regulations on the policy to reduce import duties (“BM”) on Liquefied Petroleum Gas (“LPG”) and plastic raw materials, such as Polypropylene (“PP”), High-Density Polyethylene (“HDPE”), Linear Low-Density Polyethylene (“LLDPE”), and Polyethylene (“PE”) to 0%.

“The regulation will detail the changes to import duty tariffs, customs procedures, and the list of post tariffs (Harmonized System Code – “HS Code”) eligible for the incentive,” revealed an internal source at Hukumonline within the Directorate-General of Customs and Excise (“DJBC”) of the Ministry of Finance. 

The main focus of this regulation is to relax the BM tariffs, which was previously 5%, in order to reduce production costs for the upstream petrochemical industry. The government aims to finalize and promulgate this technical regulation in early May 2026, with it taking effect for a period of 6 months during the second half of this year.