Entrepreneurs' Response To The Plan For Imposition Of Plastic Excise And MBDK: The Government Is Not Right

Chairman of the Association of Indonesian Food and Beverage Producers (Gapmmi) Adhi S Lukman. (Photo: Rifai, DI: Raga/VOI)

JAKARTA - Chairman of the Association of Indonesian Food and Beverage Producers (Gapmmi) Adhi S Lukman said that the plan to impose excise on plastic products and packaged sweetened drinks (MBDK) was not appropriate.

"We need to explain to the government that it is not the right way to impose the excise because there are many other ways that are in accordance with the objectives," Adhi told reporters when met at the Ministry of Industry Building, Jakarta, Monday, April 3.

Adhi said the excise levy could have an unfavorable effect on the food industry, considering that the sector is still unstable to date.

"I think, yes, right now the (food) industry is still not stable, because raw materials are still high in price, while our selling price cannot go up too high," he said.

"(With excise levies) later it will be very heavy again, it can be very high," added Adhi

Furthermore, said Adhi, his party had conducted simulations related to this and the results did not benefit employers' associations.

"At that time we were still in the simulation and it was not fixed because the government had not yet given an exact figure. We will explain that it was not appropriate," he concluded.

For your information, the Indonesian government plans to impose excise levies on plastic products and packaged sweetened drinks (MBDK) in 2023.

The plan is even contained in the 2023 State Budget by targeting revenue from excise duty on sweetened plastic and beverage products of IDR 4.06 trillion.

The new excise levy has been approved by President Joko Widodo (Jokowi) and stated in Presidential Regulation (Perpres) Number 130 of 2022 concerning the Details of the State Budget for Fiscal Year 2023. This regulation was signed by Jokowi on November 30, 2022.