Jakarta, Indonesia (News Today) - The Indonesian government plans to scrap import duties on several food commodities in a bid to secure sufficient supply and stabilize food prices amid erratic weather.“We have decided to scrap import duties on 57 items...we expect to issue a ministerial decree Friday,“ Coordinating Minister of Economics Hatta Rajasa told reporters late Thursday following a cabinet meeting.
Trade Minister Mari Pangestu said following the meeting that wheat, soybeans, fertilizer and animal feed are among the commodities that will have tariffs removed. Food items form the biggest component in the basket of goods used to calculate consumer price inflation in Indonesia, the world's fourth-most-populous nation.
Higher food prices pushed December's annual inflation rate to 6.96%, above the government's 6.0% target, amid adverse weather conditions that disrupted production and distribution.
The government's statistics said this month that rice, wheat, soybeans and flour are likely drivers of higher food prices in the first quarter of the year. The government has previously decided to scrap import duties on rice, the country's main staple food.
Source : kompas
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