Indonesia’s Finance Minister, Purbaya Yudhi Sadewa, is set to review the imposition of excise taxes on specific goods, including diapers and single-use eating and drinking utensils. This initiative is part of a broader government effort to conduct extensification studies for wet wipes excise and expand the state’s revenue base through a proposed increase in the upper limit of the Palm Oil Export Levy.
These considerations are detailed within the Minister of Finance Regulation (PMK) Number 70 Year 2025, which outlines the Strategic Plan of the Ministry of Finance for 2025-2029. This significant regulation was established on October 10, 2025, and officially enacted on November 3, 2025.
The primary objective of this regulation is to achieve optimal state revenue across various sectors, encompassing taxes, customs, excise duties, and Non-Tax State Revenue (PNBP).
Elaborating on this goal, the regulation states, “Efforts undertaken to achieve this objective include exploring revenue potential by expanding the tax, customs, and excise base, alongside mapping PNBP potential. This has been realized through comprehensive studies on potential Exciseable Goods (BKC) such as diapers and single-use eating and drinking utensils, as well as extensification studies for wet wipes excise and broadening the revenue base with a proposed increase in the upper limit for the Palm Oil Export Levy.” This statement from the regulation was quoted on Sunday (9/11).
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From a regulatory perspective, several key policies have already been established. These include the determination of excise tariff policies for tobacco products, the identification of Export Goods Subject to Export Duties, and their corresponding tariff rates. Furthermore, the government has introduced the imposition of taxes on benefits-in-kind and enjoyment, codified through Government Regulation (PP) Number 55 Year 2022. This regulation specifically addresses the Income Tax Treatment for Reimbursements or Rewards related to Work or Services Received or Obtained in the Form of Benefits-in-Kind and/or Enjoyment.
The regulation also elaborates on several ongoing fiscal reform efforts, particularly those aimed at boosting state revenue. Significant initiatives already implemented include the crucial update of the core tax administration system and the modernization of CEISA (Customs-Excise Information System and Automation).
To further intensify and extend both tax objects and subjects, the regulation highlights efforts such as developing a licensing and income taxation database for digital content providers. Additionally, it mentions ongoing studies into the potential excise taxation of a wide range of products, including luxury goods, packaged sweetened beverages, plastic products, packaged sodium-rich processed foods, motorcycles, coal, and sea sand. These measures complement existing policies like the excise tariff policy for tobacco products and the excise tariff policy for beverages containing ethyl alcohol.
Summary
Indonesia’s Finance Minister, Purbaya Yudhi Sadewa, is reviewing the imposition of excise taxes on specific goods, including diapers and single-use eating utensils. This initiative is detailed in the Ministry of Finance Regulation (PMK) Number 70 Year 2025, which outlines the Strategic Plan for 2025-2029. The primary objective is to optimize state revenue by expanding the tax, customs, and excise base, alongside mapping Non-Tax State Revenue (PNBP) potential. Efforts include extensification studies for wet wipes excise and a proposed increase in the upper limit for the Palm Oil Export Levy.
To further achieve these goals, the government is modernizing core tax administration systems and developing databases for digital content providers. Ongoing studies are also exploring potential excise taxation on a wider range of products, such as luxury goods, packaged sweetened beverages, plastic products, and motorcycles. These measures complement existing policies, including excise tariff policies for tobacco products and beverages containing ethyl alcohol.
