Indonesia to Impose Sweetened Beverage Excise in 2027<\/p>\n
Reporter<\/p>\n
September 25, 2026 | 05:14 pm<\/p>\n
TEMPO.CO, Jakarta - Indonesia\u2019s House of Representatives\u2019 Budget\nCommittee has backed the government\u2019s plan to impose an excise on\npackaged sugar-sweetened beverages starting in 2027, after the policy\nwas repeatedly postponed.<\/p>\n
Said Abdullah, chair of the House Budget Committee, said the excise\nshould be implemented next year as the government seeks to increase\nstate revenue while maintaining fiscal discipline.<\/p>\n
\u201cIf it is postponed again, state revenue alone will increase by\nalmost Rp400 trillion. Where will it come from? The commitment of the\nBudget Committee and the government is to maintain the deficit,\u201d Said\ntold reporters after a meeting with the government at the House complex\non Thursday, September 24.<\/p>\n
The government and the Budget Committee agreed on a state revenue\ntarget of Rp3,435.1 trillion in the 2027 draft state budget, or RAPBN.\nThe figure is part of a budget framework that targets a fiscal deficit\nof 2.4 percent of gross domestic product.<\/p>\n
The revenue target includes Rp2,911 trillion in tax revenue,\ncomprising Rp2,593 trillion in tax receipts and Rp318 trillion in\ncustoms and excise revenue. Non-tax state revenue is targeted at\nRp522.48 trillion.<\/p>\n
The sweetened beverage excise is expected to contribute about Rp1.6\ntrillion to the 2027 state revenue target, according to recent budget\ndiscussions.<\/p>\n
Sweetened Beverage Excise Has Been Delayed Since 2019<\/p>\n
Plans to impose an excise on packaged sugar-sweetened beverages have\nbeen under discussion since 2019 but have repeatedly been postponed.<\/p>\n
Finance Minister Suahasil Nazara declined to provide details when\napproached by reporters after Thursday\u2019s meeting.<\/p>\n
\u201cDetails later,\u201d Suahasil said.<\/p>\n
The latest budget agreement indicates that the excise is being\nincorporated into the 2027 revenue framework, although the draft budget\nstill has to proceed to the House plenary session for final approval.\nThe government and the Budget Committee agreed to continue deliberations\non the 2027 state budget at the plenary meeting scheduled for September\n29.<\/p>\n
Former Finance Minister Purbaya Yudhi Sadewa previously said the\nexcise could be introduced once economic conditions were stronger.<\/p>\n
\u201cIf the economy is struggling, why would I tax it? But once it is\nstrong, I will impose it. It should indeed be taxed,\u201d Purbaya said on\nSeptember 7, as quoted by Antara.<\/p>\n
Calls for the Excise to Be Implemented<\/p>\n
One group calling for the government to introduce the excise is FAKTA\nIndonesia, or the Urban Citizens Forum.<\/p>\n
FAKTA Indonesia chairperson Ari Subagyo Wibowo said the prolonged\ndelay was no longer merely a matter of policy choice. He argued that it\namounted to government inaction in fulfilling what he described as\nconstitutional and legal obligations.<\/p>\n
The proposed excise is part of broader efforts to increase state\nrevenue, with the government and the Budget Committee seeking to raise\nrevenue while keeping the 2027 fiscal deficit at 2.4 percent of GDP.<\/p>\n
Read: 2027 State Budget: Indonesia Targets Spending of Rp4,106tn<\/p>\n
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