Indonesias new fiscal policy package to cut ca deficit by $3 bln

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JAKARTA Dec 9 Indonesia's new fiscal policy package, which includes raising import taxes on non-inflationary goods, will cut the current account deficit by $2-3 billion next year, the finance minister said on Monday. Chatib Basri told reporters that the increase in taxes would affect 870 products, including mobile phones, electronics, laptops, jewellery and perfume.

Southeast Asia's largest economy reported an $8.4 billion current account deficit in the third quarter, equivalent to 3.8 percent of gross domestic product.

The finance minister last month estimated the current account deficit of $7 billion in September-December and a total for 2013 at $31 billion-$32 billion.