Distribution of Cigarette Rolling Machines to Be Restricted

The Ministry of Industry will issue regulations to limit the trade of equipment and raw materials for cigarettes in an effort to suppress the circulation of illegal cigarettes. This is because the existence of illegal cigarettes stems not only from imports but also from domestic production.

“The distribution of rolling machines will be regulated and tightened. We will also attempt to regulate the distribution of paper,” stated Merrijantij Punguan Pintaria, Director of Beverage, Tobacco Products, and Refreshment Industries 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 limiting the circulation of cigarette filters within the new regulations.

He explained that these restrictions will be included in the revision of Ministerial Regulation Number 72 of 2008. He noted that the Ministry of Industry is involving industry stakeholders and other ministries/agencies in the discussion of the regulatory revision, targeting completion within this year.

“It is currently in the finalisation stage because our internal colleagues, including the legal bureau, want to ensure there are no unintended consequences,” said Merrijantij.

According to him, the market share of illegal cigarettes in Indonesia has reached 13.9 per cent, consisting of machine-made clove cigarettes (SKM). He estimates that Indonesia potentially loses at least Rp 31 trillion in cigarette excise revenue due to the circulation of illegal cigarettes. This figure is an assumption based on multiplying the projected 2025 production of machine-made clove cigarettes, which is 311 billion sticks, by a minimum excise value of Rp 746 per stick. “In reality, there is an additional budget of Rp 31 trillion that we could manage if we can eradicate illegal cigarettes,” he added.

Merrijantij expressed concern that the circulation of illegal cigarettes could become more massive if the government standardises packaging. He noted that the standardisation of packaging colours, which is currently being regulated to a single colour (Pantone 443), could further facilitate illegal production. “Because currently, they require significant investment to make their products look similar to legitimate cigarettes,” he said.