Indonesia slaps import duty on flour
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Indonesia's Finance Ministry has put a provisional import duty of 20 per cent on imported flour following an investigation by the Indonesian Trade Safeguard Committee into alleged unfair trade practices that have affected local industry.
The additional duty will add to the existing 5 per cent import duty on all producers.
“The imposition of this temporary safeguard duty will last 200 days after this ministerial rule takes effect,” Finance Minister Agus Martowardojo said in his ruling issued last week.
The request for the provisional additional duty was submitted by industry players who expected necessary measures to be put in place to curb imported flour sold below market prices, which they said would disadvantage local flour mills, particularly newcomers.
The measure is considered necessary to help local industry thrive amid heightened competition from cheap imports flooding the market during the period of investigation by the authority.
