JAKARTA, RAKYAT NEWS – The Indonesian government has yet to confirm the implementation of excise taxes on sweetened packaged beverages (MBDK) in 2025. The Ministry of Finance (Kemenkeu) emphasized that the decision will depend on this year’s economic and social conditions, which will be closely monitored.

Director General of Customs and Excise, Askolani, explained that the government plans to evaluate developments during the first two quarters of 2025. “We will assess the economic situation and adapt our plans accordingly,” he stated in Jakarta on Monday, January 6. The government also intends to consider social dynamics to ensure that the policy aligns with public needs and economic stability.

The excise tax aims to address rising diabetes rates in Indonesia by reducing the consumption of sugary beverages. However, authorities are cautious, ensuring the tax does not disrupt economic recovery or burden businesses and consumers.

Revenue Target Set by President Prabowo Subianto

President Prabowo Subianto has set an excise revenue target of IDR 3.8 trillion from MBDK for 2025. This target is outlined in Presidential Regulation (Perpres) No. 201 of 2024, which details the 2025 state budget. Total tax revenue for 2025 is projected at IDR 2,490.91 trillion, with the MBDK excise forming a small but notable part of the overall figure.

Initially planned for 2023, the implementation of the MBDK excise tax was delayed. The delay was formalized through Perpres 75 of 2023, which amended earlier regulations by removing the excise revenue target for 2023. This postponement allowed the government more time to assess conditions before moving forward with the policy.

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)