Articles by Ilona Estherina

World

Indonesia Delays Plans for Diaper, Wet Wipe Taxes Until Economy Stabilizes

TEMPO.CO, Jakarta - Indonesia’s Finance Minister Purbaya Yudhi Sadewa has assured that no new taxes or taxable items will be introduced until the country’s economy stabilizes. This includes previously discussed proposals to impose taxes on disposable diapers and wet wipes.“Taxes on diapers and wet wipes will not be implemented in the near future. My stance remains the same: we will not introduce additional taxes until the economy stabilizes,” Purbaya said during a briefing at his office on Friday, November 14, 2025.The former chair of Indonesia’s Deposit Insurance Corporation (LPS) added that new taxes would only be considered if the national economy grows by 6 percent or more.The proposal to expand taxation is outlined in the Ministry of Finance Regulation Number 70 of 2025, which details the ministry’s Strategic Plan for 2025–2029 and was officially enacted on November 3, 2025. According to the regulation, the plan is part of broader efforts to optimize state revenue.“We are exploring revenue potential by expanding the tax base, improving customs and excise collections, and mapping potential non-tax state revenue. This includes studies on taxable goods such as diapers, disposable food and beverage utensils, and wet wipes,” the regulation states.The ministry is also considering raising the upper limit of export duties on palm oil as part of its strategy to broaden the revenue base.Discussions on diaper taxes date back to a 2021 document by the Ministry of Finance’s Financial Education and Training Agency (BPPK), which highlighted the environmental impact of plastic-based products.The move was prompted after the House of Representatives Commission XI approved the government’s plan to expand the tax base to include certain plastic products.Disposable diapers were identified as a major environmental concern due to materials such as synthetic pulp, polychlorine dibenzodioxins, super-absorbing polyacrylic acid, and plastics used in production.Taxes are typically levied on products that require consumption control, circulation monitoring, or mitigation of negative social and environmental impacts. They also serve as a tool to maintain fairness and balance in state revenue.Editor’s Choice: Minister Purbaya Seeks Role in Whoosh Train Debt Restructuring Talks with ChinaClick here to get the latest news updates from Tempo on Google News