Finance Ministry Expands Excise to Diapers and Wet Wipes

The Ministry of Finance (MoF) announced that it is conducting a study to add new excise taxable goods, specifically diapers and wet wipes. The study is included in Annex of Ministerial Regulation No 70/2025 on the MoF Strategic Plan 2025‑2029. The statement was released on 7 November 2025.

The excise expansion aims to achieve optimal state revenue from taxes, customs and non‑tax sources. Under the Excise Law, a product can be taxed if it meets any of four criteria, such as negative social or environmental impact. Previously, the MoF proposed excise on plastic products in 2016 and on sweetened beverages in 2020, but those targets are absent from the 2025 state budget.

Should diapers and wet wipes become taxable, manufacturers and importers will face additional levies that could raise consumer prices. The final tax rate will be set by a government regulation after parliamentary approval during the preparation of the State Budget (APBN).