Jakarta. Indonesia has postponed the implementation of an excise tax on sugary packaged beverages (MBDK) to 2026, citing the need for further regulatory preparation and current economic considerations, officials announced Monday.

The Finance Ministry had originally planned to introduce the tax in July 2025 to curb excessive sugar consumption and address rising health concerns. However, the lack of supporting government regulations has forced a delay.

“It’s postponed to 2026,” said Nirwala Dwi Heryanto, a spokesperson for the Directorate General of Customs and Excise (DJBC), during a press briefing on Monday.

The government had aimed to collect Rp 3.8 trillion ($235 million) in revenue from the MBDK tax as part of its 2025 excise target of Rp 244 trillion. The delay now creates a shortfall in projected income that the ministry plans to offset through other revenue channels.

“We will look for alternative sources of revenue, whether from other excise items, import duties, or export duties,” Nirwala added, adding that rising crude palm oil (CPO) prices may help boost export levy collections.

The MBDK excise tax was intended to help combat Indonesia’s growing public health crisis linked to sugar overconsumption. The policy would have included thresholds on sugar content levels in beverages to discourage high-sugar products.

During a recent press conference for the June 2025 edition of the “APBN KiTa” fiscal report, Customs and Excise Director General Djaka Budhi Utama confirmed the delay, stating, “For now, it will not be implemented in 2025. Maybe in the future.”

Febrio Kacaribu, Director General of Fiscal Policy at the Finance Ministry, said the postponement also reflects Indonesia’s current macroeconomic landscape.

“Policy decisions always take economic conditions into account. While MBDK is primarily a health policy, we must align it with broader economic priorities,” Febrio explained.

According to data from the Health Ministry, Indonesia is grappling with a sharp rise in non-communicable diseases. The prevalence of diabetes has doubled over the past decade to 10 percent, affecting 28 million people in a population of 280 million. Meanwhile, 28.7 percent of the population exceeds recommended intake levels for sugar, salt, and fat, and 95.5 percent consume insufficient fruits and vegetables. Additionally, 35.5 percent are physically inactive.

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