The Indonesian government has decided to scrap the 18-month import duty exemption facility established for sixty types of basic materials, including food ingredients, when it is up for renewal in January 2001.

In terms of food, this means that duty can now be added to milk, tomato paste, powdered garlic and cornstarch, among other important ingredients. 

It seems that the government no longer deems the exemption necessary, however food manufacturers have criticised the plans, arguing that Indonesia’s industry cannot afford to compete in the market if imports duty on materials increases beyond 5%.