{
    "success": true,
    "data": {
        "id": 1817732,
        "msgid": "proposal-for-cheap-cigarettes-must-consider-various-aspects-1782150638",
        "date": "2026-06-22 23:31:44",
        "title": "Proposal for Cheap Cigarettes Must Consider Various Aspects",
        "author": "",
        "source": "VIVA",
        "tags": "berita",
        "topic": "Economy",
        "summary": "A proposal to expand production of low-cost cigarettes for lower-income groups has drawn criticism from public health and economic observers. Critics argue that raising the production threshold for lower excise tax brackets would flood the market with cheap cigarettes and reduce potential state revenue. The current excise tax gap between top-tier and lower-tier cigarette producers stands at Rp485 per stick.",
        "content": "<p>Jakarta \u2013 The discourse on providing more room for the industry to\nproduce cheap cigarettes for lower-middle-class groups has drawn\nscrutiny from various quarters. The proposal previously emerged after\nHouse of Representatives (DPR) Commission XI member Andi Yuliani Paris\npushed for the implementation of a special excise tax for the\nlower-middle cigarette segment, as well as an increase in the production\nthreshold to above 3 billion sticks per year. The idea was touted as an\neffort to curb the rampant circulation of illegal cigarettes. However, a\nnumber of observers believe the policy risks creating new problems,\nranging from wider access to cheap cigarettes to a potential decline in\nstate revenue from tobacco excise. Beladenta Amalia, Project Lead for\nthe Tobacco Control Center at the Center for Indonesia\u2019s Strategic\nDevelopment Initiatives (CISDI), assessed that raising the production\nlimit for machine-rolled cigarette groups with lower excise rates would\nallow more companies to remain in the low-rate tier despite increased\nproduction capacity. \u201cIf they can produce even more at a fairly low\nexcise rate, that will certainly increase the availability of cheap\ncigarettes on the market,\u201d she told reporters on Monday, 22 June 2026.\nAccording to Beladenta, this situation could hinder the optimisation of\nstate revenue. The more producers that remain in the low-rate group, the\ngreater the potential revenue that cannot be maximised. Currently, the\nexcise rate for Machine-Rolled Kretek Cigarettes (SKM) Tier 1 is\nrecorded at Rp1,231 per stick. Meanwhile, Tier 2, with a production\nlimit of up to 3 billion sticks, is subject to a rate of Rp746 per\nstick. The difference between the two reaches Rp485 per stick. \u201cThis\nwill actually be detrimental from a revenue perspective because the\npotential to obtain greater receipts is not achieved. And this has been\nevident over the last two years,\u201d she said. A similar view was expressed\nby Roosita Meilani Dewi, Head of the Center of Human and Economic\nDevelopment (CHED) at ITB Ahmad Dahlan. She believes that changing the\nproduction limit for the low-rate tier would actually provide greater\nbenefits for large-scale cigarette companies. According to Roosita,\ncompanies operating near the production threshold will have more room to\nmarket cheap products without having to move to a higher tax\nbracket.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/proposal-for-cheap-cigarettes-must-consider-various-aspects-1782150638",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}