Excise Taxation of Sugar-Sweetened Beverages

The policy of imposing excise tax on Sugar-Sweetened Beverages is a strategic measure to reduce the growing incidence of Non-Communicable Diseases in Indonesia, particularly diabetes and obesity linked to the consumption of sugary drinks. The yearly increase in SSBs consumption harms public health and imposes a significant financial burden on the state, especially through the Social Health Security Administering Body (BPJS). Therefore, firm legal intervention is needed to limit consumption and promote a healthier lifestyle. The implementation of excise taxes on sugar-sweetened beverages should not be viewed merely as a fiscal instrument to boost revenue, but also as a means of protecting the public’s right to live a healthy and productive life. This policy must be understood as part of a broader public health strategy rather than solely an economic measure. Moreover, the policy is expected to encourage industries to reformulate their products into healthier alternatives to avoid excise taxation.