The Implementation Of Ready-to-eat Food Excise Is Considered To Lower People's Purchasing Power

Chairman of the Association of Indonesian Food and Beverage Producers (Gapmmi) Adhi S. Lukman (Photo: Doc. VOI)

BOGOR - Chairman of the Association of Indonesian Food and Beverage Producers (Gapmmi) Adhi S. Lukman opened his voice regarding government policies that impose excise duty on ready-to-eat food. The regulation is contained in Government Regulation (PP) Number 28 of 2024 concerning Implementing Regulations of Law Number 17 of 2023 concerning Health.

Adhi expressed concern about a decrease in people's purchasing power due to the enactment of the regulation. However, Adhi acknowledged that his party would support the rules signed by the head of state on July 26, 2024.

Adhi said the government's goal to control the consumption of sugar, salt, and fat (GGL) to reduce the number of non-communicable diseases (PTM) should be supported but must be reviewed.

"We support the government's program for handling PTM, we really support it, but the way we have to talk about it together. Because whatever it is, if it is subject to excise duty, but consumers cannot control their own diet, it's useless. In the end, it will increase product prices and reduce the purchasing power of our society," he said when met in Bogor, Thursday, August 8.

Furthermore, Adhi believes that the government should be aggressively conducting education related to the impact of excessive GGL consumption. He gave an example of the World Food Safety Exhibition which was carried out last month, his party has shown a lot of products without sugar content, but in reality when it is circulated to the public, the bany which then adds artificial sweeteners when being sold to the public.

"So the sugar-free drink is added by the consumers themselves. So it's useless," he said briefly.

He reiterated GAPMMI's support for government policies but he wanted to ensure that the rules made must be discussed together so that they can bring good benefits to all parties.

As for Government Regulation (PP) Number 28 of 2024 concerning Implementing Regulations of Law Number 17 of 2023 concerning Health which was signed on July 26, 2024. Referring to Article 194 in this regulation, the central government can stipulate 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.