The Indonesian government is pressing ahead with plans to impose an excise tax on sugar-sweetened beverages (SSBs) this year, citing rising diabetes rates, even among children, as a key health concern. Finance Minister Sri Mulyani Indrawati reaffirmed the policy during a budget hearing, aligning it with the Health Ministry’s preventive agenda. However, the move has triggered resistance from industry players and experts who warn that the tax could severely impact the already struggling beverage sector and may fall short of achieving its health objectives. Critics, including the Indonesian Soft Drink Industry Association (ASRIM), argue that SSBs contribute minimally to overall sugar intake and that the policy’s timing could worsen economic recovery. The Ministry of Industry has also raised concerns over the lack of consultation and called for a realistic transition period, emphasizing that pricing alone won’t shift consumer behavior. Economist Mohammad Faisal of CORE Indonesia questioned the clarity of the policy’s goals—whether it prioritizes health or revenue—and warned that it could burden consumers, hurt industries, and slow economic growth. With ongoing discussions in the House Commission XI, stakeholders are urging the government to base the excise on sound data and ensure a balanced approach that supports both public health and industrial sustainability.Source: https://indonesiabusinesspost.com/4316/policy-and-governance/industry-pushes-back-as-govt-reaffirms-plan-to-impose-excise-tax-on-ssbs (ICE GIACARTA)

Fonte notizia: Indonesia Business Post, 15 May 2025