JAKARTA, April 28 — Indonesia will grant zero-tariff on imports of liquefied petroleum gas (LPG), down from five per cent previously, to support its petrochemical industry amid difficulties in securing key feedstock.
ANTARA news agency reported Economic Affairs Coordinating Minister Airlangga Hartarto as saying that the policy aims to assist the industry, which is currently facing difficulties obtaining naphtha due to the crisis in the Strait of Hormuz.
In line with President Prabowo Subianto’s directive, the Energy and Mineral Resources Minister is currently seeking alternative sources of naphtha.
“The petrochemical industry produces various industrial chemicals by processing refinery outputs such as naphtha or natural gas into derivative products, including plastic feedstock.
“Therefore, as a short-term measure, the government has lowered the import duty on LPG so that refineries can switch to using LPG as an alternative feedstock,” he said today.
Airlangga added that the policy would be in effect for six months and is pending the issuance of regulations by the Industry and Finance Ministries.
