November 8, 2025 | 01:57 pm
TEMPO.CO, Jakarta - The Ministry of Finance is exploring the imposition of excise rate on diapers and wet tissues, as outlined in Ministerial Regulation Number 70 of 2025 concerning the Strategic Plan of the Ministry of Finance for 2025-2029.
The regulation was signed by the Minister of Finance, Purbaya Yudhi Sadewa, and officially promulgated on November 3, 2025, as part of the effort to optimize state revenue.
"Exploring revenue potential from tax, customs, and excise expansion, as well as mapping the potential non-tax state revenue (PNBP) carried out through the preparation of a study on the potential of Excisable Goods in the form of diapers, disposable eating and drinking utensils, and a study on the extension of excise rates to wet tissues," as quoted from the draft document on Friday, November 7, 2025.
Additionally, the Ministry of Finance also plans to expand its revenue base through a proposal to raise the upper limit of the Palm Oil Exports Duty. Previously, a document from the Financial Education and Training Agency (BPPK) of the Ministry of Finance, published in August 2021, explicitly discussed the potential of diaper taxes.
The document explains that the plan was first raised when the House of Representatives' Commission XI gave approval to the government to expand the tax base by including plastic products. The government was asked to prepare a roadmap for its expansion.
Disposable diapers are one of the plastic products that pollute the environment extensively, as their components include synthetic pulp, polychlorinated dibenzodioxins, super-absorbing polyacrylic acid gel, and plastic.
The country's revenue potential from the implementation of diaper tariffs, based on diaper sales and the baby population at that time, is predicted to reach Rp1.32 trillion. Excises are objective levies imposed on specific products that possess one or more characteristics or properties, namely that their consumption needs to be controlled, their circulation needs to be monitored, and their use can have negative impacts on society or the environment.
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