Sweetened Packaged Beverages Set for Excise Implementation in 2026
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JAKARTA, Investortrust.id — The Ministry of Finance announces on Monday, Nov 17, 2025 that Indonesia begins implementing an excise on sweetened packaged beverages in 2026 to shift sugar consumption patterns and strengthen long-term public health. The measure focuses first on ready-to-drink beverages sold at retail.
The Ministry of Finance, formally known as Kementerian Keuangan (Kemenkeu), outlined the scope in the 2026 state budget law. Director General of Economic and Fiscal Strategy Febrio Nathan Kacaribu said the rollout covered ready-to-drink sweetened beverages and packaged concentrates intended for retail distribution.
“The scope we have established in the 2026 state budget law covers ready-to-consume drinks, so ready to drink and concentrates in retail packaging,” Febrio said during the hearing with Commission XI of the House of Representatives on Monday, Nov 17, 2025.
He clarified that the excise would not apply to sweetened drinks prepared and consumed on-site. Drinks mixed at food stalls or restaurants would remain outside the system.
“So if we drink sweet iced tea at a food stall, that is not part of the excise,” he said.
Febrio said the measure remained under coordinated review among ministries and government institutions. He noted that the excise was intended for near-term application as the government sought high economic growth while managing health risks tied to rising sugar consumption.
The government saw the excise as a tool to change consumption behavior and encourage lower sugar intake. The Ministry of Finance expected the Ministry of Health to provide technical guidance on the medical impact of sweetened beverages.
“In discussions, it is often mentioned that the impact on public health is significant, and if we draw the line toward the state budget, we must consider whether this has consequences for BPJS claims as more people develop sugar-related illnesses,” he said.
Febrio said more than 115 jurisdictions worldwide had already implemented similar sweetened beverage taxes. He described this as a global trend where fiscal policy served to reduce sugar-related health burdens.
In Southeast Asia, he said seven countries had adopted such excises, namely Cambodia, Laos, Brunei, Thailand, the Philippines, Malaysia, and Timor Leste. “The average rate implemented in the ASEAN region is around Rp 1,771 per liter,” he said.
He emphasized that Indonesia would adopt its tariff gradually and calibrate it based on health and economic considerations. The measure aligned with the Asta Cita agenda, which included protecting society from rising rates of diabetes mellitus, obesity, and other non-communicable diseases.