House of Representatives to summon Purbaya to set new layered tobacco excise tariff

The House of Representatives is set to summons Finance Minister Purbaya Yudhi Sadewa to determine the magnitude of the new layered tobacco excise tariff (CHT), aimed at encouraging illegal cigarette producers to become legal. Chairman of Commission XI, Mukhamad Misbakhun, said discussions on when to hold the meeting were ongoing, noting that proposals must originate from the finance minister but the rate should be discussed with the DPR. Misbakhun emphasised that addressing illegal cigarettes that exploit the new layered excise is crucial given its potential impact on strengthening state revenue. The tobacco excise is currently the most serious issue and requires immediate action, he said. It is understood that Minister Purbaya has obtained DPR approval to implement the new layered CHT, designed to bring illegal producers into the legal framework. He said he had held a meeting with the DPR to discuss the implementation of the new layered CHT, but did not specify when or where the meeting took place. “Already with the DPR, already agreed,” Purbaya said from his office in Jakarta on Wednesday, 20 May 2026. According to Purbaya, the implementation now hinges on finalising the drafting of the Ministry of Finance Regulation (PMK). He also noted that he must first report to President Prabowo Subianto for details of the policy, including the tariff level. “The PMK will come first, then I must report to the president as well,” he insisted.