Indonesia Delays Sweetened Beverage Tax, Citing Economic Considerations

Reduced Target Compared to 2024

The revenue target for MBDK excise in 2025 reflects a significant decrease compared to the 2024 budget. In 2024, the government aimed to collect IDR 4.38 trillion from MBDK excise, but the target for 2025 is 13.24% lower, amounting to a reduction of IDR 589 billion. This adjustment underscores the government’s cautious approach to balancing fiscal and social considerations.

Weighing Economic and Public Health Objectives

While the excise tax aims to improve public health by discouraging sugary beverage consumption, its implementation must account for economic recovery and potential industry impacts. Policymakers are navigating these competing priorities to ensure the tax supports both fiscal goals and broader health initiatives.

As the government reviews the conditions in 2025, public and industry stakeholders are awaiting updates on the policy’s timeline and its potential implications. Authorities have reiterated their commitment to aligning fiscal measures with Indonesia’s public health and economic priorities, reflecting a strategic but careful approach to this initiative. (Uki Ruknuddin)