MoF Reg. 50/2026: 0% Import Duty for Aircraft MRO and Petrochemical LPG

The government has cut import duty to 0% on goods and materials for the aircraft Maintenance, Repair, and Overhaul (MRO) industry, and on LPG imported as petrochemical feedstock. The measure is set out in Minister of Finance Regulation No. 50 of 2026, the Third Amendment to MoF Regulation No. 26/PMK.010/2022, stipulated on July 15, 2026, promulgated on July 21, 2026, and effective from July 28, 2026.

MoF Reg. 50/2026 forms part of the Second-Half 2026 Economic Stimulus Package. Technically, it amends the Chapter 98 Notes in Appendix II and the goods classification and import duty structure for Chapter 98 in Appendix III — Chapter 98 being the special chapter of the Indonesian Customs Tariff Book that covers provisions serving national interests.

Two headline facilities

The facility for the aircraft MRO industry

The regulation introduces 33 new headings (98.12 through 98.44) grouping aircraft components by their original HS chapter — heading 98.12 for components from Chapter 32 (colouring preparations, paints, varnishes, putty), 98.13 from Chapter 33, 98.14 from Chapter 34, through to 98.44 for components from other chapters (including beeswax, toluene, hydraulic brake fluid, and petroleum jelly). Together these cover roughly 148 tariff lines at a 0% import duty rate.

Worth noting: these Chapter 98 headings do not create new goods. They are an alternative entry route for items that already have tariff lines in Chapters 1–97. Where the conditions are met, importers may use the Chapter 98 heading and its 0% rate.

Three cumulative conditions for headings 98.12–98.44

• Goods must be imported by an aircraft repair and maintenance industrial service company designated by the Minister of Industry or an appointed official.
• The import must be supported by the "Tanda Sah Surat Keterangan Verifikasi Industri" document issued under the special scheme for the supply of goods and materials to aircraft repair and maintenance service companies.
• The import must comply with Minister of Industry Regulation No. 16 of 2026 and its amendments, which set the criteria and procedures for using this scheme.

The facility for LPG petrochemical feedstock

New heading 98.45 contains two tariff lines: 9845.10.00 for liquefied propane (originating from tariff line 2711.12.00) and 9845.20.00 for liquefied butane (from 2711.13.00). Both carry a 0% import duty.

Unlike the MRO facility, this one is time-boxed: Article II of MoF Reg. 50/2026 states the 0% rate applies for six months from the date the regulation takes effect — that is, from July 28, 2026 until around the end of January 2027.

• Eligibility criteria for petrochemical companies are set out in Minister of Industry Decree No. 1944 of 2026 and its amendments.
• The Minister of Industry submits a letter to the Minister of Finance naming the petrochemical companies that meet those criteria.
• LPG not used in petrochemical production, transferred to another party, or not listed in the Appendix to Decree 1944/2026 reverts to its tariff line in Chapters 1–97.

What stays unchanged

Appendix I (General Rules for the Interpretation of the Harmonized System) is unchanged. So are all section and chapter notes outside Chapter 98, along with the other Chapter 98 headings such as 98.01–98.02 (motor vehicles) and 98.04–98.11 (shipbuilding industry). Import procedures for these goods continue to follow the prevailing customs legislation.

What this means for your business

• MRO companies: confirm your designation as an aircraft repair and maintenance industrial service company is in hand, and arrange the Tanda Sah Surat Keterangan Verifikasi Industri before goods arrive at port.
• Petrochemical companies: check whether your company is named in Decree 1944/2026. The six-month window is short, so import scheduling will largely determine how much you save.
• Importers and customs brokers: update your tariff line master data; misstating a Chapter 98 line on customs documents invites corrections and penalties.
• All beneficiaries: put traceability in place to prove goods were actually consumed in the intended activity, since any other use triggers reclassification.