Indonesia delays sugary drink tax to 2026 amid regulatory, economic concerns 

INDONESIA – Indonesia has officially postponed the implementation of an excise tax on sugary packaged beverages (Minuman Berpemanis dalam Kemasan, or MBDK) to 2026. 

The tax, initially scheduled for rollout in July 2025, was delayed due to a lack of finalized supporting regulations and ongoing economic considerations. 

The announcement was made by Nirwala Dwi Heryanto, spokesperson for the Directorate General of Customs and Excise (DJBC), during a press briefing.  

“It’s postponed to 2026,” Nirwala stated, confirming that the government is still preparing the necessary regulatory framework to support the tax. 

The Finance Ministry had projected the MBDK tax to generate Rp 3.8 trillion (US$235 million) in revenue as part of the 2025 excise target of Rp 244 trillion.  

The delay now leaves a gap in expected revenue, which the ministry intends to compensate through alternative sources such as other excise items, import duties, and export levies. 

One possible offset may come from rising crude palm oil (CPO) prices, which could contribute to increased export levy collections. 

The MBDK excise tax was designed to reduce sugar consumption and address escalating public health challenges related to non-communicable diseases. The policy planned to introduce sugar content thresholds in beverages to discourage high-sugar products. 

During a separate media briefing for the June 2025 edition of the “APBN KiTa” fiscal report, Customs and Excise Director General Djaka Budhi Utama reiterated that the tax would not take effect in 2025. “Maybe in the future,” he said, leaving open the possibility for re-evaluation. 

Director General of Fiscal Policy Febrio Kacaribu added that the delay reflects broader macroeconomic realities. “Policy decisions always take economic conditions into account,” he said. “While MBDK is primarily a health policy, we must align it with national economic priorities.” 

According to the Health Ministry, Indonesia faces a significant rise in lifestyle-related illnesses. Diabetes now affects 10 percent of the population—up from 5 percent a decade ago—while nearly 29 percent exceed recommended sugar, salt, and fat intake. Physical inactivity also affects more than a third of the population. 

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