The government will issue a finance minister regulation on new import tariffs within two days, said Coordinating Economic Minister Darmin Nasution after a meeting in Jakarta on Tuesday.  

The import tariff for downstream products would be up to 10 percent, while the import tariffs for raw material would be at 2.5 percent, he added.

“The list will be completed within two days. We will announce it so that all the relevant people know about it,” Darmin said as reported by kontan.co.id.

He said the government accelerated the process to issue the new policy so that it could immediately help the country reduce its current account deficit, which was at 3 percent.

He added that under the regulation, import tariffs would not only be in the form of customs duties, but it would refer to import income tax (PPh impor) or PPh 22 as well.

“The point is that it refers to the PPh 22 regulation. It will not [directly] add the import cost because it can be paid in credit and can be calculated when the importers paid [other] income taxes,” Darmin said.

The government is now assessing 900 consumer goods, whose import tariffs would be increased.

Indonesia Statistics recorded a US$2.03 billion trade deficit in July from the trade surplus of US$1.74 billion the previous month. Imports of consumer goods rose even higher than overall imports to $1.72 billion in July, up 70.50 percent month-to-month. (bbn)