The Ministry Of Industry Concerning Sweetened Drinks Is Subjected To Excise: Small-MSME Industry Can Be Affected

JAKARTA - The Ministry of Industry (Kemenperin) said that the application of packaged packaged sugar excise (MBDK) would have an impact on small industries and MSMEs.

The Director General of Agro Industry at the Ministry of Industry, Putu Juli Ardika, revealed that his party had also conducted an analysis of the elasticity of the MBDK excise enforcement.

"So, the impact on the industry, especially in MSMEs and small and medium industries, is at risk of having an impact. Meanwhile, a big impact for this large industry will be able to quickly carry out analysis," said Putu in the agenda of the Working Committee Meeting (Panja) Supervision of Processed & Food Products Ready to Food with the Fat Sugar Content Commission IX DPR RI at the Parliament Complex, Jakarta, Monday, July 1.

Putu said that several countries have implemented MBDK excise, such as Australia, Mexico, and the UK.

However, he said, the level of obesity in the country is still high.

"Like Mexico, if we look at the obessity rate, it is still increasing. Likewise, it is implemented in the UK and Australia," he said.

According to Putu, so far the industrial sector has implemented regulations for sugar, salt and fat or GGL in the production of ready-to-eat processed foods.

In addition, industry players are also considered to have followed processes such as labeling and permission from the Food and Drug Supervisory Agency (BPOM).

"This industry follows all these processes, yes. So, it can get a distribution permit from BPOM," he said.

Previously, Minister of Finance (Menkeu) Sri Mulyani Indrawari said that the target for plastic excise duty and packaged sweetened drinks (MBDK) has been set.

However, the implementation of MBDK excise is more complex when compared to plastic excise because its implementation requires cross-ministerial discussion.

"We have conveyed the practice here. We only make a judgment on economic problems, if we are weak we add excise duty and also the urgency of this excise policy for consumption disclosure because it is dangerous for the environment and health. So, we see the timing of economic conditions and targets that have been set in the APBN," Sri Mulyani explained in a meeting with Commission XI DPR, Tuesday, March 19, 2024.

According to Sri Mulyani, this is because sweetened drinks are included in the Health Law (UU).

Thus, the discussion will be carried out jointly across ministries/agencies, both the Ministry of Health and the Ministry of Industry.

"Later there will be discussions between the Ministry of Health and the Ministry of Industry regarding sugar levels, salt levels that are considered healthy versus industry. This is why there have been various reactions because there have been discussions between k/l," he said.

Even so, Sri Mulyani emphasized that before implementing the MBDK excise, consultations would be carried out in advance, both in the k/l, cabinet and DPR RI.