Indonesian Government Delays Sugar-Sweetened Beverage Tax

Economic Growth Concerns Drive Decision

The Indonesian government has decided to postpone the implementation of excise duty on sugar-sweetened beverages (SSBs) until the country's economic growth surpasses 6% ¹

. This decision, announced by Finance Minister Purbaya Yudhi Sadewa, contrasts with the initial plan to introduce the tax in 2026. The tax was expected to generate Rp 7 trillion in revenue for the state budget ¹

Source 1

https://nasional.kontan.co.id/news/lembaga-konsumen-soroti-penundaan-cukai-mbdk-begini-catatan-ylki-dan-fkbi

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Industry Reaction

Industry players have welcomed the government's decision. Triyono Prijosoesilo, Chairman of the Indonesian Soft Drink Industry Association (Asrim), supported the postponement, citing the current challenging conditions in the Fast-Moving Consumer Goods (FMCG) sector, particularly in the beverage industry ²

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Industry Performance

The beverage industry growth has been sluggish, with only a 1.8% growth in sales volume up to Q3 2025, largely supported by the packaged drinking water category, which grew by 2.4%. Other beverage categories experienced negative growth during the same period ²

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Consumer Protection Concerns

Consumer protection organizations, such as the Indonesian Consumers Foundation (YLKI) and the Indonesian Empowered Consumers Forum (FKBI), have expressed strong criticism against the delay. Rafika Zulfa from YLKI highlighted the government's consistent postponement of the SSB tax implementation, questioning the commitment to consumer welfare ¹

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