Sugary Drinks Could Face Excise Tax: How Much Are Annual Sales?

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Reza Pahlevi 13/07/2022 18:30 WIB

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According to the Directorate General of Customs and Excise, sugar-sweetened beverages are subject to excise duty because of their potential health risks associated with excessive consumption.

Value of Soft Drink Sales in Indonesia (2017-2021)

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Value of Soft Drink Sales in Indonesia (2017-2021)

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The Center for Indonesia's Strategic Development Initiatives (CISDI) proposes implementing an excise tax on sugar-sweetened beverages (SSBs) in the range of Rp1,500-Rp2,500 per liter.

This proposal is submitted because SSB consumption risks causing diseases such as obesity, diabetes, and heart problems.

"We are pushing for a 20% tax on the price, as it has proven effective in reducing public consumption by 24%," said CISDI researcher Gita Kusnadi, as quoted by *Katadata.co.id* on Monday (5/7/2022).

In line with this proposal, the Directorate General of Customs and Excise also conducted a market survey on the potential for excise taxes on SSBs from July 8-10, 2022.

"The Excise Law No. 39 of 2007 states that one of the characteristics of goods that can be subject to excise duty is goods that, if consumed excessively, can have a negative impact on consumers," explained the Directorate General of Customs and Excise in a press release on its official website, Sunday (10/7/2022).

"Based on this, it is considered necessary to conduct further studies on Sugar-Sweetened Beverages (SSBs) for excise tax extensification," it continued.

According to Euromonitor data, the sales value of soft drinks in Indonesia exceeded US$7 billion or more than Rp100 trillion per year during 2017-2020. Then in 2021, sales dropped to around US$6.7 million, as shown in the graph.

However, this figure does not fully reflect SSB sales. Euromonitor also includes bottled mineral water in the soft drinks category, so the sales value of mineral water is mixed with sweetened beverages.

Besides mineral water, beverages included in the soft drinks category in Euromonitor data are packaged sweetened beverages such as soda, juice, tea, coffee, isotonic drinks, energy drinks, syrup mixes, agar-agar, and so on. However, sugary milk drinks are not included in this group.

(Also Read: [Number of Diabetes Sufferers in Indonesia Projected to Reach 28.57 Million in 2045](https://databoks.katadata.co.id/datapublish/2021/11/24/jumlah-penderita-diabetes-di-indonesia-diproyeksikan-capai-2857-juta-pada-2045))

Editor : Adi Ahdiat

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."

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Sugary Drinks Could Face Excise Tax: How Much Are Annual Sales?

Sugary Drinks Could Face Excise Tax: How Much Are Annual Sales?

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Sugary Drinks Could Face Excise Tax: How Much Are Annual Sales?

Sugary Drinks Could Face Excise Tax: How Much Are Annual Sales?

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Related Data

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The number of Transjakarta, MRT, and LRT users in Jakarta increased in September 2025.

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