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Indonesia to roll out sweetened beverage excise by second half of 2025

According to the 2025 state budget, the government has set a Rp 3.08 trillion (US$190.3 million) revenue target from the excise on sweetened beverages, much lower than the Rp 4.3 trillion stipulated in the 2024 state budget.

Ruth Dea Juwita (The Jakarta Post)
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Mon, January 13, 2025

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Indonesia to roll out sweetened beverage excise by second half of 2025 Sweet selections: A worker arranges bottled syrups in a supermarket in Jakarta on Dec. 19, 2023. (Antara/Rivan Awal Lingga)

T

he government plans to implement an excise for sweetened beverages starting in the second half of 2025, according to the Finance Ministry.

To implement the policy, the government has included the planned roll out in this year’s state budget law, as stipulated in the 2021 Law on Tax Harmonization.

"The regulation is scheduled for the second half of 2025. It’s part of the legal framework established in the 2025 State Budget Law," said Nirwala Dwi Heryanto, the ministry’s customs and excise directorate general spokesperson, as quoted from Kumparan.

The government will introduce a government regulation and a ministerial regulation to define the tax’s scope and thresholds, Nirwala noted.

“Not all beverages will be taxed; those below a certain sugar content will be exempt,” explained Nirwala.

He added that the excise would apply to both factory-made and store-sold sweetened beverages, including those from coffee shops and bubble tea (boba) outlets.

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The proposed levy is expected to boost excise revenue and curb excessive sugar consumption among the population, which health experts have linked to a sharp rise in diabetes cases. 

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