Jakarta: Indonesia is set to introduce an excise tax on sugary packaged beverages in the second half of 2025 to reduce sugar consumption, as per the Finance Ministry.
“The excise on sugary beverages is planned for implementation in the second half of 2025,” said Nirwala Dwi Heryanto, spokesperson for the Directorate General of Customs and Excise, during a press conference in Jakarta on Friday, reported Jakarta Globe.
Nirwala emphasized that the tax is not intended to increase government revenue but to regulate sugar consumption.
The tax will be applied based on the sugar content, production processes, and other criteria of the beverages. The Health and Finance Ministries are finalizing the tax structure, which is expected to generate Rp 6.25 trillion ($385.24 million) in revenue. The policy is guided by Government Regulation (PP) No. 28/2024 under Law No. 17/2023 on Health.
Deputy Health Minister Dante Saksono Harbuwono noted that 28.7 percent of Indonesians exceed recommended sugar, salt, and fat intake levels, while 95.5 percent consume insufficient fruits and vegetables.
Economist Telisa Aulia Falianty from the University of Indonesia shared insights on proposed tax rates. The State Financial Accountability Agency (BAKN) has recommended a 2.5% excise rate, while the government has suggested fixed rates: Rp 1,500 per litre for drinks like soft drinks, bottled tea, and energy drinks, and Rp 2,500 per litre for concentrates such as syrups.
The regulation is in its final stage, with the government working to inform stakeholders to ensure smooth implementation. “The academic studies are complete, and we are ready to enforce the policy this year once it is signed off,” Dante stated.
