The Indonesian government this week announced it would increase import tariffs on a wide range of consumer goods in response to the falling rupiah and the country's deteriorating current account.
Developing markets around the world are struggling with the strength of the US dollar, as the US government continues to hike interest rates and domestic market protectionism.
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The rupiah has declined by around 10% against the US dollar since the beginning of the year, driving up import prices and putting pressure on holders of foreign debt.
According to local reports, import tariffs will be hiked from 2.5% to between 7.5% and 10% next week on around 1,150 products worth a total of US$6.6bn in 2017.
Imported products that are also made locally, such as day to day household goods, will be taxed at the higher rate.
Finance minister Sri Mulyani Indrawati told local reporters duty hikes represent a "good opportunity for local producers to increase domestic market penetration".
Industry minister Airlangga Hartarto was reported as saying that a 10% import tariff would be applied to luxury cars while imported cars with an engine capacity of 3,000 cc or over will be blocked.
