Jakarta, ThedailyID — Indonesia plans to introduce an excise tax on packaged sugary drinks in the second half of 2027. The government expects the policy to generate Rp1.7 trillion in additional state revenue.
The Directorate General of Customs and Excise (DJBC), under the Ministry of Finance, is preparing the rules needed to implement the tax.
Director General of Customs and Excise Djaka Budhi Utama said the government is still finalizing the implementation framework. Discussions include collection procedures and the applicable tax rates.
“We are completing the regulations for the implementation of the packaged sweetened beverage excise tax. Hopefully, it can take effect in the second half of 2027,” Djaka said at the October 2026 APBN Kita press conference on Friday, October 9.
The tax is already included in Indonesia’s 2027 State Budget Law. However, the government must still complete the technical regulations before implementation can begin.
Customs and Excise is also discussing the proposed rates with the Directorate General of Economic and Fiscal Strategy. One key issue is whether the tax rate will depend on the sugar content of each beverage.
The government has not yet announced the final tariff structure. Officials must settle the collection mechanism and other technical provisions before the policy takes effect.
Meanwhile, Customs and Excise is also discussing a possible additional tariff tier for tobacco excise. However, the proposal remains under discussion and has not become an official policy.
Djaka said the agency would continue encouraging tobacco businesses to comply with excise regulations. Authorities are also strengthening oversight of cigarette production and distribution.
Illegal cigarettes remain a major concern for the government. Officials aim to ensure tobacco products meet applicable requirements, including the obligation to pay excise duties.
Through stronger monitoring and law enforcement, Customs and Excise seeks to reduce illegal cigarette distribution and optimize state revenue from excise taxes.
The proposed additional tobacco excise tier still requires further discussion. The government has not announced a final decision on the plan.
