Indonesia Postpones Excise Tax on Diapers and Wet Wipes

Economic Growth Takes Priority

The Indonesian government has decided to delay implementing excise tax on diapers and wet wipes until the economy achieves stronger growth. Finance Minister Purbaya Yudhi Sadewa emphasized that the government will not introduce new taxes until the economy reaches at least 6% growth ¹

. This decision reflects the government's commitment to supporting economic recovery and development.

Current Status of the Excise Tax Plan

The Directorate General of Customs and Excise (DJBC) had been studying the potential excise tax on various products, including diapers, disposable eating utensils, and wet wipes, as outlined in the Ministry of Finance's Strategic Plan for 2025-2029 ²

. According to Nirwala Dwi Heryanto, Director of Communication and User Guidance at DJBC, the discussion on imposing excise tax on these products is still in the scientific study phase ²

Source 2

https://finance.detik.com/berita-ekonomi-bisnis/d-8210511/djbc-buka-suara-soal-kajian-popok-hingga-tisu-basah-kena-cukai

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Rationale Behind the Decision

The government's decision to postpone the excise tax is driven by the need to support economic growth. By committing not to introduce new taxes until the economy reaches a certain threshold, the government aims to create a more favorable business environment and stimulate economic activity. This move is seen as a positive step for businesses and consumers alike, as it potentially reduces the financial burden on manufacturers and consumers of these products.

Implications for Businesses and Consumers

The delay in implementing excise tax on diapers and wet wipes is expected to have a positive impact on both businesses and consumers. Manufacturers will not have to absorb additional tax costs, which could otherwise lead to higher prices for consumers. This decision aligns with the government's broader strategy to foster economic growth and stability.