Implications of Sweetened Beverage Excise Feared to Burden Consumers

The Directorate General of Customs and Excise ("DJBC") of the Ministry of Finance plans to impose excise on packaged sweetened beverages ("MBDK") in the second half of 2025. However, amid declining consumer purchasing power, the implications of the MBDK excise are feared to only add to consumer burdens.

Chairman of the Soft Drink Industry Association ("Asrim"), Triyono Prijosoesilo, believes that implementing the MBDK excise will not significantly reduce calorie consumption. According to the Total Diet Study (2014) by the Ministry of Health, beverage products (both processed and unprocessed) contribute only 10% of the total food and drink consumption.

“If the government proceeds with implementing the MBDK excise, the ready-to-drink beverage industry will undoubtedly experience a decline in sales. Meanwhile, consumers will still consume non-processed sweetened drinks such as boba tea, milk coffee from coffee shop chains, and others,” Triyono told Hukumonline.

The Head of Excise Tariff and Base Price at DJBC, Akbar Harfianto, stated that the excise will be applied under an "on-trade" scheme at the industry level and an "off-trade" scheme at retail outlets.

Moreover, the government still needs to formulate supporting regulations, including Government Regulations ("PP"), Minister of Finance Regulations ("PMK"), and Director General Regulations ("Perdirjen") to minimize administrative burdens for the industry. It is hoped that this policy will effectively control excessive sugar consumption.