{
    "success": true,
    "data": {
        "id": 1815635,
        "msgid": "new-cigarette-excise-layer-not-yet-implemented-dpr-provides-input-to-purbaya-1782089440",
        "date": "2026-06-22 06:45:00",
        "title": "New Cigarette Excise Layer Not Yet Implemented, DPR Provides Input to Purbaya",
        "author": "",
        "source": "CNBC",
        "tags": "",
        "topic": "Economy",
        "summary": "The Indonesian Ministry of Finance's plan to introduce a new cigarette excise layer in June 2026 has stalled, pending formal consultation with the House of Representatives (DPR). Lawmakers are urging a balanced approach that considers state revenue, public health, and employment, while also calling for affirmative policies to bring small-scale and illegal cigarette producers into the legal excise system.",
        "content": "<p>The Ministry of Finance\u2019s plan to implement a new layer of tobacco\nexcise (CHT) in June 2026 has yet to materialise. Finance Minister\nPurbaya Yudhi Sadewa has not provided an official explanation to House\nof Representatives (DPR) Commission XI regarding the implementation of\nthe new CHT layer, which is specifically intended to draw illegal\ncigarette producers into the cigarette excise structure, thereby making\ntheir products legal. \u201cSo far, we have not received an official\nexplanation from the Ministry of Finance regarding this proposed plan,\u201d\nsaid Commission XI member from the Golkar faction, Putri Puteri Anetta\nKomarudin, via a written statement on Monday (22\/6\/2026). According to\nPuteri, the Ministry of Finance needs to thoroughly and deeply examine\nthe proposal for the new cigarette excise layer, involving the\nparticipation of various stakeholders. This is particularly important\nbecause excise tariff policy must be formulated in a balanced manner\nbetween the interests of state revenue and controlling public\nconsumption. \u201cIt is not solely about pursuing state revenue, but also\nneeds to consider its impact on consumption, health, and workforce\nsustainability. Therefore, this proposal must maintain that balance,\u201d\nshe stressed. Moreover, she considers that this proposal could also add\ncomplexity to its supervision, so it is necessary to ascertain the\ntechnical readiness of the Directorate General of Customs and Excise\n(DJBC) to conduct supervision and enforcement. \u201cOf course, this proposal\nmust be designed carefully so that its impact on consumption control and\nstate revenue can reach an optimal middle ground,\u201d said Puteri.\nMeanwhile, Commission XI member from the PDI Perjuangan faction, Said\nAbdullah, argued that the implementation of a new cigarette layer by\nPurbaya is actually needed by the small and medium-scale manufacturers,\nby improving the structure of CHT group III through affirmative\npolicies. As is known, in the current CHT structure, layers up to group\nIII only exist for hand-rolled kretek cigarettes (SKT) and hand-rolled\nwhite cigarettes (SPT). Meanwhile, machine-made kretek cigarettes (SKM)\nand machine-made white cigarettes (SPM) only go up to group II. \u201cIf the\nexcise tariff groups are too simple, especially in group III, it will\nmake things difficult for small and medium-scale cigarette factory\nproducers,\u201d Said asserted. Said considers that group III excise tariffs\nshould be made into an affirmative policy, especially to accommodate\nsmall and medium-scale cigarette manufacturers who also have the\npotential to contribute excise tariffs and employment. He said that in\nMadura, for example, the tobacco products industry is able to employ\nmore than 186,000 direct workers, not including the number of indirect\nworkers and the economic impact in the downstream region. \u201cWith such an\naffirmative policy, group III cigarette manufacturers with various\nproduct types and production volumes can be legally covered by excise\ntariffs. The prevalence of cigarettes with illegal excise is because\nthey cannot meet the group III cigarette excise tariffs,\u201d Said stressed.\nSaid also assessed that the current group III tariff layer is still\nburdensome for new cigarette producers, whose average age is under 20\nyears and who do not yet have a strong market segment. For producers at\nthat level, the group III excise tariff is still considered expensive\nand not commensurate with their business calculations. As a result, they\ninstead choose to use fake excise stamps and collude with excise\nofficers. \u201cIf they are given an affirmative excise tariff, for example,\nan excise tariff incentive of 300 rupiah specifically for manufacturers\nunder 20 years, this policy will encourage them to be covered by legal\nexcise, excise revenue will increase, and their business climate can\noperate without being chased by excise officers,\u201d said Said. Based on\ninput from that type of cigarette producer, Said said that if the group\nIII excise tariff is given an affirmation policy, excise revenue from\ngroup III could actually increase drastically, because having many\nexcise tariff layers will not necessarily reduce the performance of\nstate CHT revenue. \u201cIf tobacco product production increases, excise\nrevenue will automatically rise, and the number of cigarette producers\nwill grow, because the excise tariff for group III with an affirmation\npolicy will not burden them. They will choose to use legal excise.\nSupervision becomes easier, and law enforcement will also be\nincreasingly minimal,\u201d Said explained. For Said, the Ministry of Finance\nmust be able to encourage cigarette manufacturers using fake excise\nstamps to willingly use official excise stamps through an affirmation\npolicy in group III. He considers this policy not merely as an addition\nof a new layer in the CHT structure. \u201cIf they are given an affirmation\npolicy as I have explained, of course the government can realise it.\nHowever, conversely, if the affirmation policy has been implemented but\ngroup III manufacturers under 20 years still use fake excise stamps, I\nagree they should be given severe legal sanctions and fines,\u201d he said.\n\u201cWhat is actually needed is not an additional layer but an affirmation\npolicy for the group III excise tariff, as I explained above,\u201d Said\nstressed. Previously, Finance Minister Purbaya Yudhi Sadewa confirmed\nthat he has not yet implemented the new Tobacco Excise (CHT) layer\ntariff in June 2026. According to him, this policy needs to be discussed\nfirst with DPR Commission XI. \u201cNot yet. I am still going to face the DPR\nfirst for discussion,\u201d said Purbaya at the DPR Building on Thursday\n(4\/6\/2026). The excise policy was originally Purbaya\u2019s method to draw\ndomestic illegal cigarette producers into the legal system, thereby\nincreasing state revenue. Informally, Purbaya has already discussed this\npolicy with legislators. \u201cWe have spoken behind the scenes, but not\nofficially yet. The official one hasn\u2019t happened. But we have spoken\nbehind the scenes already,\u201d he said.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/new-cigarette-excise-layer-not-yet-implemented-dpr-provides-input-to-purbaya-1782089440",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}