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"Tax for Sweet Beverage Consumption Control, Effective or Not?"

Tax for Sweet Drink Consumption Control, Effective or Not?

Dream - A sweet drink with a high sugar content that is consumed excessively, so it is one of the causes of diabetes and obesity.

Tax for Sweet Drink Consumption Control, Effective or Not?

The following translation preserves the HTML tags: "This has led the government to propose the implementation of a tax for sweetened beverages, which is expected to reduce the rates of diabetes and obesity in Indonesia."

Tax for Sweet Drink Consumption Control, Effective or Not?

It should be noted that in 2020, Indonesia ranked third in the category of the highest consumption of Packaged Sweetened Beverages (MBDK) in Southeast Asia.

This condition is certainly worrying considering that in 2022, the International Diabetes Federation (IDF) reported that the number of type 1 diabetes patients in Indonesia reached 41,817 people. This number makes Indonesia the country with the highest number of diabetes patients in ASEAN.

To overcome this issue, the Association of Soft Drink Industry (ASRIM) explains that they are trying to address this by introducing low-calorie or zero-calorie products in hopes of addressing the public's concerns about these diseases. Apparently, another challenge faced by industry players in launching these products is the lack of public interest in low-calorie products.

Tax for Sweet Drink Consumption Control, Effective or Not?

"The challenge is to introduce the product. How the product can be accepted by the society requires a process. The demand for low-calorie drinks and food is not yet significant. It needs a process for that," said Triyono Prijosoesilo, Chairman of the Indonesian Soft Drink Industry Association (ASRIM) at the discussion event "Performance of the Beverage Industry in 2023, as well as Opportunities and Challenges in 2024" in Jakarta, March 13, 2024."

Tax for Sweet Drink Consumption Control, Effective or Not?

It should be noted that taxes do not function as an additional income for the country, but rather taxes function to control goods that have negative impacts on society.

"At present, taxes in Indonesia are only applied to cigarettes and alcoholic beverages. 'To reduce the rates of diabetes and obesity, the approach should be focused on the consumption patterns of the society. Determining the biggest contributors of calories and the extent of sweetened beverage consumption in the society is crucial before implementing any policies. Otherwise, the concern is that the policies will be implemented, but the health of the society will not improve, and the industry will be affected. As a result, many sectors will be impacted,' explained Mohammad Faisal, Executive Director of the Center of Reform on Economics (CORE). Report by Aykaputri Amalia Rahmani."

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