Towards A Long-Living Golden Generation : The Packaged High-Sodium Food Excise Scheme In Indonesia

Abstract

The purpose of this study is to analyze the feasibility of implementing excise on high-sodium packaged food and to propose an effective excise scheme. Additionally, this study aims to assess the potential state revenue that could be generated from the excise on such products. This study employs a qualitative method conducted through the collection and analysis of various literature sources, including books, scientific articles, news reports, and other relevant materials related to the subject matter. The literature reviewed also includes examples from countries that have implemented sodium food taxation policies.Packaged foods exceeding sodium benchmarks could generate around Rp8.5 trillion in excise revenue, based on instant noodles, processed meats, and snacks alone. Expanding the excise to other high-sodium packaged foods could further increase revenue while supporting public health goals. Effective policy design and implementation will be key to maximizing both fiscal and social benefits.The implementation of excise taxes on high-sodium packaged foods in Indonesia could effectively reduce sodium consumption and related health risks, following successful international examples. The potential revenue of IDR 8.5 trillion offers fiscal benefits that could support health and social programs, making this policy both a public health and economic strategy.This study presents an analysis concerning the imposition of excise on currently non-taxed objects, namely high-sodium packaged foods. The analysis is conducted with reference to prevailing regulations, particularly those governing excise, and comprehensively examines the potential adverse impacts that may arise should the consumption of these objects remain unregulated. Furthermore, the study evaluates the prospective state revenue that could be realized through the implementation of the proposed excise policy.