Indonesia raises import duties on consumer goods

Tariff hike: People visit a textile, leather and shoes exhibition in Jakarta. Indonesia has raised import tariffs on food, clothes and many other consumer goods ‘to push local industry’. — AFP

JAKARTA: Indonesia has raised import tariffs on food, clothes and many other consumer goods in a move to help domestic producers, though economists said it would fuel inflation and noted firms faced bigger problems than foreign competition.

Indonesia’s economy is growing at its slowest pace for nearly six years – just 4.71% annually in the first quarter – and is struggling to develop new engines of growth to counter the weakness of the commodity sector.