Jakarta – The Indonesian government will impose import duties of 30 percent on rice and 25 percent on sugar from January 1, reports said Friday.

Trade and Industry Minister Jusuf Kalla said the imposition of the new tax followed the strengthening of the rupiah currency and weaker international prices for the two commodities, the Kompas daily reported. Both commodities currently incur no import duties. Kalla said the new import duties had been included in a letter of intent to be sent by the government to the International Monetary Fund (IMF) next month.

The letter will contain the macro and micro economic target for next year and is required under the terms of the IMF's 46-billion-dollar bailout package for Jakarta.

Kalla said the prices of rice in Indonesia was 2,400 rupiah (about 33 cents) per kilogram compared to 1,500 rupiah abroad, and that the new import duty will reduce the price gap. He said the government will also lift restrictions on the type of rice or sugar that could be imported.

Indonesia has been self sufficient in rice production since 1985, but it has begun to import again in recent years to accommodate jolts in demand and holes in production cycles.