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Indonesia Quadruples Coffee Import Tax to Protect Local Producers

Tuesday, 01 December 2015

Indonesia Quadruples Coffee Import Tax to Protect Local Producers

Indonesia wants to quadruple its import tax on processed coffee as part of a government plan to protect the local industry.

Importers of roasted coffee beans, ground coffee and instant or mixed coffee will now have to pay a 20 percent import duty, up from an earlier 5 percent tariff, according to a statement from the Finance Ministry.

A national standard will also be imposed in January aimed at weeding out low-quality processed coffee producers, a separate Agriculture Ministry statement said.

Indonesia produces around 700,000 tons of coffee annually and exports 65 percent of the yield, making it the world's fourth-largest exporter after Brazil, Vietnam and Colombia.

Indonesia's per-capita coffee consumption is a modest 1.1 kilogram per year, far behind export destinations like the United States, where people consume 4.3 kilograms on average, or Finland with 11.4 kilograms a year. 

http://jakartaglobe.beritasatu.com/business/indonesia-quadruples-coffee-import-tax-protect-local-producers/

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