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Jakarta Post

State may lose Rp 1.1t as food duties scrapped

  • Esther Samboh

    The Jakarta Post

Jakarta   /   Sat, January 29 2011   /  12:34 pm

The state will potentially suffer revenue losses of Rp 1.1 trillion (US$122.1 million) this year after waiving import duties on 57 food-related items in four categories, officials say.

Responding to concerns about confusion over when the tariffs will be suspended, Finance Ministry Fiscal Policy Agency chief Bambang Permadi Soemantri Brodjonegoro said the new regulation on import duties became effective Jan. 24,

“The regulation is aimed at supporting Indonesian industries by curbing inflationary pressures and boosting competitiveness, and most importantly, by providing affordable food prices for Indonesians,” he told a news conference.

Potential losses could be compensated with such benefits, he said, adding “Of course [the regulation] will impact state income, but that’s not the point. Curbing inflation is what matters most for the people’s welfare.”