Pricing for 2027 in Indonesia: VAT Stays at 12% and the Sweet Drinks Excise Is Not Applied Yet
Indonesia's finance minister says there is no plan to change the VAT rate and that the sweetened drinks excise will not run in 2027. What that means for your price list and budget, and what still needs watching.Indonesia's Finance Minister Purbaya Yudhi Sadewa said on 10 September 2026 that there is no plan to change the rate of PPN, the country's value-added tax. A month earlier he also said the excise on packaged sweetened drinks would not be run in 2027. For owners building next year's price list and budget, these two statements are the best anchor available right now, with one important caveat: both are remarks by a minister, not law.
What was said about VAT
DDTCNews reported on 10 September 2026 the minister's answer when asked about a possible change, amid news that Japan would cut its consumption tax. In our translation: "No [there is no plan to change the VAT rate]. So it does not go up and does not go down, we stay steady." The article states that the general VAT rate remains 12%.
His reason for not lowering it was equally direct. As quoted by DDTCNews: "If [the VAT rate] goes down, the deficit gets bigger."
So for anyone planning around Indonesia VAT 2027, the reasonable starting point is the same figure as today. We do not discuss the tax base or effective rates here because the sources we used do not cover them. If your business has a special treatment, ask a consultant.
What was said about the sweetened drinks excise
Fortune Indonesia reported on 14 August 2026 that the excise on packaged sweetened drinks, known by its Indonesian abbreviation MBDK, will not be applied in 2027. Purbaya was quoted as saying, in our translation: "We will run it when the economy is better than it is now." He also said he would discuss the excise with parliament (DPR) when the economy grows at 6 percent.
According to the same report, the rates once proposed by the finance ministry were Rp1,500 per litre for packaged sweetened drinks and Rp2,500 per litre for concentrates. Those figures are an old proposal, not a rate in force.
There is one difference in reporting you should know about. Fortune Indonesia wrote that the excise is not included in the revenue target of the 2027 draft state budget (RAPBN 2027). While researching this piece we also came across reporting by IKPI, the Indonesian tax consultants association, saying the potential excise revenue is still included. The two accounts differ and we cannot establish which is right. What they share: no start date has been set.
Summary for planning
| Item | Latest statement | Status |
|---|---|---|
| General VAT rate | Stays at 12%, no plan to change (10 September 2026) | Ministerial statement |
| Sweetened drinks excise | Not applied in 2027 (14 August 2026) | Ministerial statement, reports differ on the revenue target |
| Proposed excise rate | Rp1,500 per litre packaged, Rp2,500 per litre concentrate | Old proposal, not in force |
Mind the age of this information. The VAT remark is about two months old and the excise remark about three. We found nothing newer at the time of writing. Plan with these figures, but do not treat them as certain.
Building a 2027 price list that is easy to adjust
This section is our practical advice, not part of any government statement.
Separate the base price from tax
In your internal price list, keep two columns: price before tax and price after tax. Many small businesses store only the final price, so when a rate changes every price has to be recalculated one by one, often with errors. With two columns, a rate change touches a single formula.
Put a validity period on every quotation
A quotation without an expiry date is an open-ended promise. State the validity, for example 30 days, and one sentence on whether the price includes VAT. This protects you from tax changes and from rising input costs alike.
Add a tax clause to long contracts
For contracts that run through 2027, state that changes in tax rates or new government levies will be reflected in invoices from the date they take effect. This simple clause is far cheaper than renegotiating mid-year. Have a legal adviser check the wording.
For drinks sellers: run the scenario, leave prices alone
The excise is not in force, so there is no reason to raise prices on account of it today. It is still worth knowing your numbers in case it arrives one day. A simple exercise using the old proposed rate:
- Work out the volume per pack. A 500 ml bottle is half a litre.
- At the proposed Rp1,500 per litre, that bottle would carry about Rp750. This is an illustration from the proposed figure, not an official rate.
- Compare it with your current margin per bottle. If Rp750 eats most of the margin, you know which products are most exposed.
Keep the calculation in a drawer. The aim is not to change prices but to avoid starting from zero if the policy goes ahead.
Budget with one contingency line
In the 2027 budget, set aside one contingency line for tax and levy changes. You decide its size according to how exposed your products are. An unused line is good news; a missing line is a cash flow problem.
What to watch
- Official finance ministry statements and budget talks with parliament, since the excise is tied to economic conditions.
- Economic growth figures, because the minister named 6 percent as the point at which he would take the excise to parliament.
- Tax reporting that cites dates and legal bases, not just headlines.
Assign one person in the business to check these once a month. Five minutes is enough.
Making changes easy to carry out
Adjustable prices depend on tidy records: which invoices went out at the old price, which are still unpaid, and which customers hold long contracts. Bookkeeping that records invoices and payments, as Polynusa provides, helps answer those questions without digging through archives. Details are on the pricing page.
Note: this article summarises statements by officials that may change. Confirm the tax treatment for your own business with a tax consultant or the tax authority.
Sources
- DDTCNews, 10 September 2026: Japan to cut its VAT rate, Purbaya: we stay steady
- Fortune Indonesia, 14 August 2026: Purbaya: sweetened drinks excise not applied in 2027
FAQ
Will Indonesia raise VAT in 2027?
Finance Minister Purbaya Yudhi Sadewa said on 10 September 2026 that there is no plan to change the VAT rate, according to DDTCNews. This is a ministerial statement, not legislation, so it still needs watching.
Does the sweetened drinks excise apply in 2027?
According to Fortune Indonesia on 14 August 2026, the minister said the excise on packaged sweetened drinks will not be applied in 2027 and will run when the economy is in better shape.
How should a business price when tax policy may change?
Keep the base price separate from the tax component in your internal price list, put a validity period on quotations, and add a tax adjustment clause to long contracts.