Distribution of Cigarette Rolling Machines to Be Restricted

The Ministry of Industry will issue a regulation to limit the buying and selling of cigarette manufacturing tools and raw materials in an effort to suppress the circulation of illegal cigarettes. The existence of illegal cigarettes stems not only from imports but also from domestic production. “The rolling machines will be regulated and tightened. We will also try to control the distribution of paper,” said Merrijantij Punguan Pintaria, Director of Beverages, Tobacco Products, and Refreshing Materials at the Ministry of Industry, in Jakarta on Friday, 26 June 2026. In addition to rolling machines and paper, Merrijantij stated that the Ministry of Industry is considering restricting the circulation of cigarette filters in the regulation. She explained that these restrictions will be included in the revision of Minister of Industry Regulation Number 72 of 2008. She noted that the Ministry of Industry is also involving industry players and other ministries and agencies in the discussion of the revised regulation. She is targeting the revision to be completed this year. “We are currently finalising it because our internal colleagues and the legal bureau do not want any unintended impacts,” Merrijantij said. According to her, the market share of illegal cigarettes in Indonesia has reached 13.9 per cent, consisting of machine-rolled kretek cigarettes. She estimates that Indonesia could lose at least Rp 31 trillion in excise revenue due to the circulation of illegal cigarettes. This figure is an assumption based on the multiplication of machine-rolled kretek cigarette production in 2025, which totalled 311 billion sticks, and the minimum excise value of Rp 746 per stick. “Actually, there is an additional budget of Rp 31 trillion that we could manage if we could eradicate illegal cigarettes,” she stated. Merrijantij expressed concern that the circulation of illegal cigarettes would become more massive if the government standardised packaging. According to her, the standardisation of packaging colour, which is now regulated to a single colour, Pantone 443, would further facilitate the production of illegal cigarettes. “Because so far, they have needed investment to disguise their products to resemble existing cigarette brands,” she said.