The Indonesian government has raised import tariffs on a wide range of goods, including food, clothes, drinks, household goods, appliances and vehicles.
The reason given for the duty hike was to help nurture local industry but it is also seen as an attempt to reduce demand for imported goods and for foreign currency as a result.
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The rupiah has declined by 8% against the US dollar so far this year to a 17 year low, and by over 40% over the last three years. The wide ranging nature of the tariff hike means it could add to the country’s inflation, bringing further pressure on the local currency.
Tariffs on imported passenger cars are now 50%, up from 10%-40% previously.
