MarketsTuesday, 28 April 2026·India
Indonesia plans tariff relief on plastics and LPG to boost petrochemical sector
Indonesia is set to reduce import duties on certain plastic raw materials and liquefied petroleum gas (LPG) in a move aimed at supporting its petrochemical industry and strengthening domestic manufacturing.
The proposed policy is designed to lower input costs for local producers, many of whom depend on imported feedstocks and energy sources. With operating expenses under pressure across regional markets, the step is expected to provide much-needed cost relief.
The focus will be on easing tariffs for key plastic inputs used by downstream manufacturers, while also improving access to LPG for industrial and petrochemical applications. This is intended to enhance supply stability and help companies maintain consistent production levels despite ongoing volatility in global markets.
The initiative is part of a broader strategy to support industrial growth and address supply chain challenges in the manufacturing sector. Industry participants believe that reducing import costs could ease the financial burden on processors and petrochemical firms that have been dealing with high feedstock prices in recent months.
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The proposed policy is designed to lower input costs for local producers, many of whom depend on imported feedstocks and energy sources. With operating expenses under pressure across regional markets, the step is expected to provide much-needed cost relief.
The focus will be on easing tariffs for key plastic inputs used by downstream manufacturers, while also improving access to LPG for industrial and petrochemical applications. This is intended to enhance supply stability and help companies maintain consistent production levels despite ongoing volatility in global markets.
The initiative is part of a broader strategy to support industrial growth and address supply chain challenges in the manufacturing sector. Industry participants believe that reducing import costs could ease the financial burden on processors and petrochemical firms that have been dealing with high feedstock prices in recent months.
Stay ahead of market trends with the Credco app. For any queries, please reach out via WhatsApp at +91 8448083211.