Title:
Excise Policy on Sugar-sweetened Beverages: A Step Towards Indonesia’s Future

Authors:
Riyan Andriyanto, Ima Mayasari, Indonesia

Abstract:

Over the past two decades, the consumption of sugar-sweetened beverages (SSBs) in Indonesia has risen significantly, leading to an increased burden of non-communicable diseases (NCDs), particularly type II diabetes mellitus. In 2022, the International Diabetes Federation (IDF) reported that 41,817 individuals in Indonesia were diagnosed with diabetes. To address this public health challenge, the Indonesian Government plans to expand the scope of excisable goods to include SSBs, leveraging excise duties as both a revenue-generating mechanism and a regulatory tool. This study analyzes the formulation of SSB excise policies and their potential impacts, drawing comparisons with similar policies in other countries. This research uses a qualitative descriptive method through theoretical analysis of secondary data, supported by interviews with DGCE officers, health ministry officials, and an SSB shop owner. The analysis applies policy formulation theory (Lester & Stewart, 2000), political system theory (Easton), and cost-benefit analysis (Dreze, 1987). The findings suggest that the policy formulation process in Indonesia has been effective, with potential positive outcomes including a projected IDR 6.25 trillion increase in state revenue and a reduction in SSB consumption, leading to decreased NCD prevalence. However, the policy also poses risks such as increased unemployment and negative effects on related industries, including sugar production. The study's novelty lies in its comparative analysis and its potential to inspire similar excise policies targeting goods with negative societal and environmental impacts.

DOI: https://doi.org/10.51505/IJEBMR.2025.9205