Ready-to-eat Food Can Be Excise, The Ministry Of Finance Will Conduct A Study First

JAKARTA - Director General of Customs and Excise at the Ministry of Finance (Kemenkeu) Askolani said that his party would still conduct a more in-depth study regarding excise levies on ready-to-eat processed foods.

Therefore, Askolani said that his party would not be in a hurry to implement excise levies on ready-to-eat processed food because there must be a clearer study regarding its impact on the industry, health and people's purchasing power.

"Of course it must be studied in full first. It's not that easy. We have to see the industrial conditions, health conditions, economic conditions. I'm sure the Ministry of Health will review it, from there it will only be put to the Ministry of Finance, later the Ministry of Finance will review it more fully," said Askolani to the media crew at the Customs and Excise Headquarters, Wednesday, July 31.

Askolani said that his party would not yet impose excise levies on ready-to-eat processed foods because they would still wait for a more in-depth study.

"So for that (our processed food excise levy) has not yet been made. Of course, a new regulation will be made," said Askolani at the Head Office of Customs and Excise, Wednesday, July 31.

Askolani explained that his party would conduct a complete study regarding this matter and did not know exactly what the implementation would be for food processing that could be subject to excise duty.

"I don't know yet, I don't know exactly. That's just written, we'll wait for the implementation of the Ministry of Health. Those who have PP lead the Ministry of Health to be patient," he explained.

Askolani emphasized that his party will coordinate with the Fiscal Policy Agency and the Ministry of Health to make a study on the imposition of fast food excise levies.

"And later on the mechanism, the Ministry of Health will coordinate with the Ministry of Finance, of course, BKF (Varcial Policy Agency) friends will make a complete study," he explained.

For information, this is stated in Government Regulation (PP) Number 28 of 2024 concerning Implementing Regulations of Law Number 17 of 2023 concerning Health which was signed 26 July 2024.

"In order to control the consumption of sugar, salt and fat, the Central Government has determined the maximum limit for sugar, salt and fat content in processed foods, including ready-to-eat processed foods," quoted in Article 194 paragraph (1) of the regulation, Tuesday, July 30.

In addition, referring to Article 194 in the regulation, the central government can determine the imposition of excise on certain ready-to-eat processed foods in accordance with statutory provisions.

"In addition to determining the maximum limit for sugar, salt and fat content as referred to in paragraph (1), the Central Government can determine the imposition of excise on certain processed foods in accordance with the provisions of the legislation." read Article 194 paragraph (4).

This rule explains that what is meant by processed food is food or drinks resulting from the process in certain ways or methods with or without additional ingredients.

Meanwhile, what is meant by ready-to-eat processed food is processed food or drinks that are ready to be served directly in business places or outside business places such as food served in Boga services, hotels, restaurants, restaurants, canteens, canteens, street food outlets, and traveling food suppliers or similar businesses.