Due to increasing concerns over public health issues such as diabetes and obesity, the implementation of sugar excise tax on the soft drink industry in Indonesia has attracted enormous attention. This study aims to evaluate how sugar excise taxes affect the prices, consumption patterns, and profitability of the soft drinks industry, as well as the broader socioeconomic impacts. This study uses a mixed approach, involving interviews and qualitative analysis of industry data. The main findings show that if a sugar excise tax is implemented, product prices increase moderately, consumption of high-sugar beverages decreases, and consumers switch to healthier products. The research also emphasizes the problems that the industry faces, as they have to bear additional costs due to the policy. This research shows that while sugar excise may improve public health, supportive policies need to be made to reduce the economic pressure on the soft drink industry in Indonesia.
Perkasa et al. (Mon,) studied this question.