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. 

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