Finance Minister Purbaya Threatens Total Closure of Illegal Cigarette Factories After New Excise Scheme Takes Effect

Finance Minister Purbaya Yudhi Sadewa has emphasised that the government will close all illegal cigarette factories without compromise once the new excise structure scheme is enforced. This move signals the end of the tolerance period for businesses operating outside regulations. Purbaya stated that the government is currently providing limited leeway for illegal cigarette operators. However, once the legal pathway through excise layer adjustments is opened, there will be no further leniency. He explained that the government is preparing the excise layer scheme as an entry point for illegal businesses to switch to the official system. This policy is designed as a transitional phase before full legal enforcement. According to him, once the legalisation option is available, all businesses must comply with the applicable rules. If they continue operating illegally, decisive action will be taken immediately. “There is still some leeway now. But once it is opened, they must enter. If not, we will close them firmly,” Purbaya said. The policy plan will soon be brought to the House of Representatives (DPR) for further discussion after the recess period. The government targets the swift implementation of the regulation in the near future. This tightening will also be supported by law enforcement agencies and related institutions to ensure no room remains for illegal practices in the tobacco industry. In addition to illegal cigarettes, the government is expanding crackdowns on other illegal activities, including narcotics distribution. Purbaya emphasised that this step is part of efforts to clean up illegal practices while strengthening compliance and state revenue from the excise sector. Meanwhile, Acting Director General of Economic and Fiscal Strategy, Ferry Ardianto, stated that the scheme for adding layers to the current excise structure is still in the finalisation stage.