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 high school student has been arrested and detained by police in East Nusa Tenggara (NTT) following the alleged physical and sexual assault of an Australian citizen at a remote beach resort. The suspect, identified by his initials AH, was apprehended by authorities shortly after the victim reported the incident to the Southwest Sumba Police […]

Indonesia’s Ministry of Tourism has proposed expanding the country’s Visa-Free Visit (Bebas Visa Kunjungan/BVK) scheme to include travellers from Australia, China, India, Japan, South Korea and New Zealand, along with permanent residents (PRs) of Singapore, as part of efforts to strengthen international tourism. The proposal, which is still under discussion with relevant ministries and government […]

The World Health Organisation (WHO) has reported that over 1,300 people have died as a result of the extreme heatwave that has been affecting Europe since 21 June 2026. This extreme weather has been recorded as one of the worst heatwaves in the region’s history. WHO Director-General Tedros Adhanom Ghebreyesus confirmed the additional death toll […]

Rock legends Guns N’ Roses are set to return to Indonesia after an eight-year absence, with a concert scheduled at Gelora Bung Karno (GBK) Madya Stadium in Jakarta on 21 November 2026 as part of their latest world tour. The show marks the band’s first performance in Indonesia since their concert at the GBK Main […]

Indonesia Guide

Just For Fun

Write For Us

Exclusive Promotions

Event Gallery