Excise Duty on Sugary Drinks

Excise Tax on Sugary Drinks to Begin in 2025 as Childhood Diabetes Rises in Indonesia

Share:

The recent surge in diabetes cases among children in Indonesia, which has gained widespread attention through social media, underscores the urgent need for action.

According to the Ministry of Health’s official website and data from the International Diabetes Federation (IDF), the number of people with diabetes in the world in 2021 reached 537 million.

This number is predicted to increase to 643 million by 2030 and 783 million by 2045.

IDF reports that Indonesia ranks fifth in terms of the highest number of diabetes cases, with 19.5 million sufferers in 2021 and is projected to reach 28.6 million in 2045.

Meanwhile, the number of cases of diabetes and pediatric kidney failure continues to experience an alarming upward trend.

Foto oleh Nataliya Vaitkevich

One of the actions that the government has begun to take is to impose excise duties on packaged sugar-sweetened beverages.

Minister of Finance Sri Mulyani Indrawati signalled that the government will start collecting excise on packaged sugar-sweetened beverages (MBDK) in 2025. The MBDK excise tax itself is included in the list of state revenue optimization efforts proposed in the 2025 Draft State Budget (RAPBN).

Sri Mulyani said that the provisions regarding the MBDK excise levy had actually been discussed previously together with Commission XI of the Indonesian Parliament.

One of the government’s considerations for implementing the excise tax on sugar-sweetened beverages is to address the high prevalence of diabetes, offering hope for a healthier future.

“The excise tax on MBDK is in accordance with the objectives of the Ministry of Health to maintain the expansion or higher prevalence of diabetes even at the child level,” she said in a meeting with Commission XI of the House of Representatives at the Nusantara Building, Jakarta, Wednesday, August 28, 2024.

Bottled Beverage Prices Could Rise 30% due to Excise Taxes

As reported by Bisnis.com, the Indonesian Food and Beverage Producers Association (Gapmmi) projects that if the excise tax on sugar-sweetened beverages in packaging is imposed, the selling price of packaged food and beverage products will increase by up to 30%.

To anticipate the negative impact of excise on the industry and consumers, Gapmmi is currently proposing a roadmap to support the government’s goal of reducing NCDs through education and food reformulation.

Find this article helpful? Check out our other articles from Social Expat for more News recommendations in Indonesia:

SEO Writer

Imelda is a content writer specializing in viral news and Indonesian culture. Her work revolves around researching and analyzing current events, social media trends, and popular culture.

Related News

Jakarta, 3 April 2025 – Indonesia’s National Police have issued new regulations mandating foreign nationals engaged in journalistic or research activities within the country to obtain police clearance. The policy, outlined in Police Regulation No. 3 of 2025, strengthens oversight on foreign nationals operating in Indonesia. According to Article 5, Section 1, Clause (b) of […]

The government is preparing to build a giant seawall to prevent tidal flooding in coastal areas. Coordinating Minister for Infrastructure and Regional Development Agus Harimurti Yudhoyono (AHY) emphasised that this project is an important mitigation step. “Mr President has assigned us to prepare and carry out the construction of the Giant Seawall as an effort […]

Tech fans, buckle up! Apple Inc. has officially announced the launch schedule for the iPhone 16 series, with multiple models set to be available simultaneously. “Apple has confirmed that the iPhone 16 lineup, including the iPhone 16 Pro, iPhone 16 Pro Max, iPhone 16, iPhone 16 Plus, and iPhone 16e, will be available starting Friday, […]

An Argentine tourist, identified by the initials GE, was arrested by Customs officers at the international arrivals terminal of I Gusti Ngurah Rai Airport, Bali. The 46-year-old woman was apprehended for attempting to smuggle cocaine. Ngurah Rai Customs Public Relations Officer, Bowo Pramoedito, revealed that officers caught GE carrying the illicit white powder, which had […]

Expat Property

Indonesia Visas

Expat Event

Business Networking
150,000
Paradise Lane
Social Networking
150,000
Dobu Restaurant & Bar
Business Networking
150,000
Fairfield by Marriott Bali Kuta Sunset Road

Indonesia Guide

Just For Fun

Write For Us

Exclusive Promotions

Event Gallery