September 2, 2026 | 06:16 pm
TEMPO.CO, Jakarta - Indonesian Finance Minister Purbaya Yudhi Sadewa stated that he had met with several illegal cigarette business owners. "I have met several people," Purbaya said at the Parliament (DPR/MPR) complex on Wednesday, September 2, 2026.
Purbaya did not specify when the meeting took place. However, he estimated that his meeting with illegal cigarette business owners took place at the beginning of the year.
During the meeting, Purbaya said that he had inquired about the business owners' concerns and desires. On that occasion, Purbaya offered the illegal cigarette business owners to enter a new layer prepared by the government. "Take advantage of the opportunity given by the government. After that, if you still don't comply, then we will eradicate it, creating a fair game," said Purbaya.
Purbaya stated that the Ministry of Finance will discuss the regulation of tobacco excise with the House of Representatives after completing the discussion on the State Budget (APBN) for 2027.
Purbaya had previously targeted the addition of a tobacco excise (CHT) on cigarettes, which was to be implemented this year. According to him, the addition layer is aimed at encouraging illegal cigarette producers to enter the legal system so that the government can crack down on the circulation of illegal cigarettes.
This plan received criticism from several civil society groups. The Lead for Tobacco Control Center for Indonesia’s Strategic Development Initiatives (CISDI), Beladenta Amalia, believed that an additional layer does not guarantee the elimination of the circulation of illegal cigarettes. "The additional layer will not necessarily ensure that illegal cigarettes will voluntarily enter the existing system," said Beladenta last June.
There are currently eight tax band structures for machine-made and hand-rolled cigarettes. The Executive Director of the Indonesia Youth Council for Tactical Changes (IYCTC), Manik Margana Mahendra, believed that Indonesia's cigarette tax structure is already too complex. Instead of adding more, it should be simplified.
According to Manik, the additional layer also risks expanding the circulation of cheap cigarettes. This condition is considered to increase cigarette consumption and ultimately add to the burden of health spending.
Nandito Putra contributed to this article
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