Indonesia Imposes Import Tariff on Rice, Supply Improves

Indonesian finance ministry has imposed an import tariff for Rice following the improvement of supply of the commodity from domestic sources, spokesman of the Ministry said.

Previously, the government canceled the import tariff following rising prices of the commodity and chillies prices due to lack of supply impacted by weather phenomenon, which had triggered inflation to a 21-month high of 7.02% in January.

The new policy charged tariff of 450 Rupiah (about $0.052) per kg of Rice began on April 1, spokesman of the ministry Yudi Pramadi said.

Indonesia's rice supply has improved since February as some areas in the country have started main Rice harvests, easing inflation pressures to 6.84% in February and 6.65% in March. It is predicted that the ease of prices pressure would continue in April as the harvests still continue.

"This policy also aims at stabilizing rice prices in the country,"the spokesman said.

Rice is a main food for most of 240 millions Indonesian population.