The Implementation of Sugar Tax on Sugary Drinks to Prevent Diabetes Mellitus type 2 in the Era of

BPJS

Khumaira* and Reisky Nugraha *

*Hasanuddin University

ABSTRACT

In 2007, Diabetes Mellitus accounted for 14,7% age-gender-standardized death rate in urban area and
5,8% age-gender-standardized death rate in rural area (Indonesia Basic Health Research, 2007). BPJS
Kesehatan is a social security institution which provide health insurance to ensure all layers of society
are able to get access to proper healthcare. In the end of 2014, BPJS undergone financial deficit, where
the total amount of premium is IRD 41.06 trillion whereas the total amount of benefit claim is IRD 42,6
trillion (BPJS Kesehatan,2015).This study aims to assess the feasibility of the implementation of sugar tax
in Indonesia as prevention attempt of Diabetes Mellitus type 2 as well as a solution for BPJS financial
deficit.This study is a literature review of various journals retrieved from Google Scholar with keywords
of sugar tax,diabetes mellitus,BPJS.Sugar tax implementation is a tax mechanism on drinks which
contain sugar or sweetener.A review conducted by Yale Universitys Rudd Center for Food Policy and
Obesity suggested that for every 10% increase in price, consumption decreases by 7.8%. An industry
trade publication reported even larger reductions: as prices of carbonated soft drinks increased by 6.8%,
sales dropped by 7.8%, and as Coca-Cola prices increased by 12%, sales dropped by 14.6%.5 (Beverage
Digest,2008).In general, four types of pricing policies have been identified to reduce consumption of
sugary drinks : 1) Regulatory fees, 2) Sales taxes,3) Excise taxes,4) Proportional pricing iniatives. In
summary, Sugar tax implementation in the form of excise tax is a proper solution to solve both health
and economic issue in Indonesia. Its implementation on sugary drinks is expected to lowering
consumption therefore could prevent diabetes mellitus type 2 and its complication. On the other hand,
the revenue coming from the tax could be allocated to BPJS health program.

Key words: sugar tax,diabetes mellitus,BPJS