Indonesia's president has signed a decree allowing the government to cap prices of cement, staple foods and other basic goods during peak periods, a presidential spokesman said.

"This regulation gives the authority to the government to set special prices ahead of, on, or after religious holidays or during periods of price volatility," Teten Masduki, presidential spokesman, told reporters.

The government is imposing extra measures to ensure prices for food and basic goods do not spike during Ramadan, usually Indonesia's biggest shopping season. (Source: Reuters)