{
    "success": true,
    "data": {
        "id": 1818316,
        "msgid": "purbaya-insists-new-excise-layer-for-illegal-cigarettes-must-be-introduced-1782190335",
        "date": "2026-06-23 11:12:52",
        "title": "Purbaya Insists New Excise Layer for Illegal Cigarettes Must Be Introduced",
        "author": "",
        "source": "CNBC",
        "tags": "",
        "topic": "Economy",
        "summary": "Finance Minister Purbaya Yudhi Sadewa is pushing for a new tobacco excise layer to bring illegal cigarette producers into the legal system, arguing it would be unfair to eradicate them without offering a pathway to legality. Members of the House of Representatives (DPR) have urged a thorough study of the proposal, stressing the need to balance state revenue, consumption control, and employment impacts. Some lawmakers suggest an affirmative policy for small and medium manufacturers under the existing Group III excise structure could be a more effective solution.",
        "content": "<p>Finance Minister Purbaya Yudhi Sadewa is insisting on establishing a\nnew tobacco excise (CHT) layer aimed at drawing illegal cigarette\nproducers into the legal fold. He confirmed that an in-depth study will\nbe conducted before submitting the proposal for the new cigarette excise\nlayer to the House of Representatives (DPR), in line with the\nsuggestions of council members. According to him, the Ministry of\nFinance has not yet held a consultation meeting with the DPR regarding\nthe establishment of the new cigarette excise layer, as the study\ninvolving all stakeholders is still ongoing. \u201cWe haven\u2019t gone to the DPR\nyet. So if we are told to study it, we will certainly study it,\u201d Purbaya\nsaid when met at the Tanjung Priok Port area in Jakarta on Tuesday\n(23\/6\/2026). Nevertheless, Purbaya stressed that this new layer is\nneeded to accommodate small cigarette producers who have been operating\nillegally because they have not yet entered the domestic excise system.\n\u201cMost of them are illegal producers. We must find a way to give them\nroom to become legal,\u201d he said. If the government does not provide space\nfor illegal cigarette producers to enter the legal business system, he\nbelieves an injustice will arise, especially if the government\nimmediately eradicates their businesses. \u201cIf we want to shut down all\nillegal operations now, without giving them the opportunity to become\nlegal, that\u2019s not too fair for them,\u201d Purbaya asserted. Purbaya said the\npolicy of forming this new cigarette excise layer will certainly not be\nperfect immediately. However, he believes the new CHT structure will\neffectively combat the circulation of illegal cigarettes. \u201cEven if it is\nnot perfect later, it will definitely be better than the current system,\nwhere too many illegal cigarettes are circulating,\u201d Purbaya stated. As\nis known, DPR members have insisted that Purbaya first study the\nproposal to add an excise layer to accommodate illegal cigarette\nproducers in a mature and in-depth manner, involving the participation\nof various stakeholders. This is particularly because excise tariff\npolicy must be formulated in a balanced way between the interests of\nstate revenue and controlling public consumption. \u201cIt is not solely\nabout pursuing state revenue, but also needs to consider its impact on\nconsumption, health, and workforce sustainability. Therefore, this\nproposal must be able to maintain that balance,\u201d said Commission XI DPR\nmember from the Golkar faction, Puteri Anetta Komarudin, via a written\nstatement on Monday (22\/6\/2026). The DPR also considers that this\nproposal could even add complexity to supervision, so it is necessary to\nascertain the technical readiness of the Directorate General of Customs\nand Excise (DJBC) to conduct supervision and enforcement. \u201cOf course,\nthis proposal must be designed carefully so that its impact on\nconsumption control and state revenue can reach an optimal middle\nground,\u201d Puteri said. Meanwhile, Commission XI member from the PDI\nPerjuangan faction, Said Abdullah, argued that the implementation of a\nnew cigarette layer by Purbaya is actually needed by small and\nmedium-scale manufacturers, by improving the Group III CHT structure\nthrough an affirmative policy. As is known, in the current CHT\nstructure, layers up to Group III only exist for hand-rolled kretek\ncigarettes (SKT) and hand-rolled white cigarettes (SPT). Meanwhile, for\nmachine-rolled kretek cigarettes (SKM) and machine-rolled white\ncigarettes (SPM), the layers only go up to Group II. \u201cIf the excise\ntariff groups are too simple, especially in Group III, it will make\nthings difficult for small and medium-scale cigarette factory\nproducers,\u201d Said stressed. Said considers that a Group III excise tariff\nmade with an affirmative policy is needed, 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 even capable of\ndirectly employing more than 186,000 people, not including the number of\nindirect workers and the economic impact in downstream areas. \u201cWith that\naffirmative policy, Group III cigarette manufacturers with various\nproduct types and production volumes can be legally covered by excise\ntariffs. The abundance of cigarettes with illegal excise stamps is\nbecause they cannot meet the Group III cigarette excise tariff,\u201d Said\nasserted. Said also assessed that the current Group III tariff layer\nstill burdens 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,\ngiven an excise tariff incentive of 300 rupiah specifically for\nmanufacturers under 20 years old, this policy will encourage them to be\ncovered by legal excise, excise revenue will increase, and their\nbusiness climate can operate without being chased by excise officers,\u201d\nSaid said. Based on input from that type of cigarette producer, Said\nstated that if the Group III excise tariff is given an affirmation\npolicy, excise revenue from Group III could actually increase\ndrastically, because having many excise tariff layers will not\nnecessarily reduce the state\u2019s CHT revenue performance. \u201cIf tobacco\nproduct production increases, excise revenue will automatically also\nrise, and the number of cigarette producers will grow, because the\nexcise tariff for Group III with an affirmation policy will not burden\nthem. They will choose to use legal excise stamps. Supervision will be\neasier, and law enforcement will also become increasingly minimal,\u201d Said\nexplained. For Said, the Ministry of Finance must be able to encourage\ncigarette manufacturers who use fake excise stamps to willingly use\nofficial excise stamps through an affirmation policy in Group III. He\nconsiders this policy not merely an addition.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/purbaya-insists-new-excise-layer-for-illegal-cigarettes-must-be-introduced-1782190335",
        "image": ""
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    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
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