Indonesia rolls out import‑duty cuts and other measures to curb inflation

Coordinating Minister for Economic Affairs Airlangga Hartarto has asked the Ministry of Finance to issue a regulation granting a 0% import duty on plastic raw materials, LPG and aviation spare parts. The move is intended to lower production and transport costs that feed into food prices, which have been volatile and kept inflation at 3.34% year‑on‑year, still below the 3.5% target.

Hartarto highlighted that rising packaging costs, especially for plastics, amplify food price pressures, and that the new regulation should be released promptly. He also noted that the government is monitoring key commodities such as garlic, oil, and rice, and that the zero‑duty exemptions aim to stabilise the transportation sector, a major driver of the consumer price index.

Other officials, including the Minister of Home Affairs, confirmed that inflation remains under control but noted month‑to‑month increases linked to air transport and food items. The Ministry of Trade reiterated Indonesia’s commitment to using trade as a bridge for economic stability and to leveraging existing trade agreements to support industrial export growth.