Ministry of Finance Prepares Technical Regulations for the Implementation of the Excise Tax Policy on Packaged Sweetened Beverages

The Ministry of Finance is currently drafting a Regulation of the Minister of Finance (“Regulation”) as technical regulations for the implementation of the excise tax policy on sugar-sweetened beverages in containers (“MBDK”). The Regulation is a derivative regulation of the draft Regulation of the Government (“Draft Regulation”) on MBDK excise tax, which is currently still under discussion.

Agus Dwi Saptari, Head of the Excise Potential Section at the Directorate of Excise Technical Affairs and Facilities of the Ministry of Finance stated that the Regulation will serve as the technical basis for collecting MBDK excise once the Draft Regulation is enforced.

“Currently, the deliberation process for the Draft Regulation on MBDK excise is still ongoing, and it is likely that MBDK will remain a target in the State Budget for 2027. To that end, we have prepared technical regulations and possible adjustments to support its implementation,” said Agus.

Agus explained that the MBDK excise policy is one of the government’s efforts to encourage changes in public consumption patterns. According to him, the policy is expected to encourage the public to choose healthier consumption patterns while mitigating the negative impact of sugar-sweetened beverage consumption on non-communicable diseases.

While drafting the technical regulations, Agus said the Ministry of Finance is also holding discussions with other ministries and agencies to refine the draft of the MBDK excise policy. In addition, they are conducting ongoing public consultations involving academics, industry stakeholders, and the general public regarding this policy.