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

A video showing a foreign national allegedly refusing to pay for a meal at a coffee shop in Central Jakarta has attracted widespread attention on social media. The footage was shared on TikTok and later circulated across several platforms, prompting discussion among internet users. According to information shared by the TikTok account @bbbbbbbbble, the incident […]

A search operation is continuing in Biak Numfor Regency, Papua, after a suspected World War II bomb exploded and killed five people, injured 19 others, and left three residents missing. The explosion occurred at about 2.45 p.m. local time on Sunday, 31 May 2026, at the Fisheries Complex on Jalan Walter Monginsidi in Fandoi Village, […]

The Ministry of Communication and Digital Affairs (Komdigi) has officially launched biometric registration for new SIM cards using facial recognition technology. The system was introduced at FX Sudirman in Central Jakarta on Friday, 29 May, and will be fully implemented by all mobile operators across Indonesia from 1 July 2026. Director General of Digital Ecosystem […]

Bundaran HI in Central Jakarta has been decorated with lanterns and Vesak-themed installations ahead of the 2026 Vesak celebrations. Various ornaments now line the area, including colourful lantern displays and Buddhist-inspired decorations. The preparations mark the first time Vesak celebrations have been held at Bundaran HI, bringing the observance to one of the capital’s most […]

Indonesia Guide

Just For Fun

Write For Us

Exclusive Promotions

Event Gallery