What is the new import duty rate for LPG used as a petrochemical raw material in Indonesia, and how long will it last?

Indonesia has introduced a zero percent import duty on liquefied petroleum gas (LPG) for the petrochemical industry, effective from 28 July; this zero-tariff incentive will remain in effect for six months, replacing the previous 5% import duty rate.

Which Indonesian companies are the primary users of imported LPG as feedstock, and where does Indonesia source most of its LPG imports?

Chandra Asri Petrochemical and Lotte Chemical Indonesia (LCI) are Indonesia’s two primary chemical producers that use LPG as alternative feedstock; more than half of Indonesia’s LPG imports are from the US, while about 30% come from the Middle East.

Indonesia Waives Import Duty on LPG for Petrochemicals

Jul 27, 2026

Indonesia introduced a six-month zero percent import duty on LPG for petrochemicals effective July 28, lowering costs for major producers like Chandra Asri and Lotte Chemical. The policy aims to mitigate global economic pressures and follows recent incentives for plastic raw materials.

icis

2026-07-27

Indonesia Waives Import Duty on LPG for Petrochemicals

Indonesia Waives Import Duty on LPG for Petrochemicals

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