Indonesia targets sugar-sweetened beverage tax for 2027

The Indonesian government aims to implement an excise tax on sugar-sweetened beverages (SSB) starting in the second half of 2027. The policy is already included in the 2027 State Budget (APBN) with a projected revenue target of Rp 1.7 trillion.

Djaka Budi Utama, Director General of Customs and Excise, stated that the government is currently finalizing the necessary regulations to support the implementation. While the timeline is set, the specific tax rates are still being discussed in coordination with the Directorate General of Economic and Fiscal Strategy.

Finance Minister Purbaya Yudhi Sadewa noted that the decision to apply the tax remains flexible and will depend on the national economic climate. He emphasized that the government will monitor economic conditions to ensure the tax does not place an undue burden on the public or businesses during periods of economic slowdown.