Indonesian MPs Back Purbaya's Move to Maintain Cigarette Excise Tariff

Mukhamad Misbakhun, chairman of Commission XI of the Indonesian House of Representatives (DPR RI), backed Finance Minister Purbaya Yudhi Sadewa’s policy to maintain the tobacco product excise tariff (CHT) in 2027. He said the decision constitutes a form of relief for the tobacco industry and helps safeguard employment.

‘Yes, that is Mr Purbaya’s policy, and if it indeed becomes a national policy, we will strengthen it, because what? CHT, the tobacco excise that does not rise, provides relief to the industry so that they can continue,’ Misbakhun told reporters at the Parliament Complex, Jakarta, on Wednesday, 20 May 2026, as reported by Antara.

Regarding the idea of adding layers to the cigarette excise tariff, Misbakhun said this will still be pursued in coordination with the government. He noted that the government is currently seeking solutions to address the widespread circulation of illegal cigarettes, which is seen as a leakage of state revenue.

Purbaya previously said he had no intention to change the cigarette excise tariff in 2027. Therefore, the cigarette excise tariff for next year is certain not to rise or fall.

Purbaya said the government is currently choosing to maintain stability in the tobacco products industry while strengthening revenue oversight of the sector.

‘(The cigarette excise tariff) I will keep it constant, not up and not down. I want to see stability first,’ he told reporters at the Ministry of Finance, Jakarta, on Tuesday.

Instead of changing the tariff, the government will focus on strengthening oversight of the tobacco industry through digitalisation. One of the steps prepared is the installation of production-counting machines at several cigarette factories.

This strategy is intended to determine the real potential of state revenue from the tobacco industry while also curbing illegal cigarette circulation.

The government will monitor revenue developments after the supervisory system is implemented. The evaluation results will form the basis for determining the direction of tobacco tax policy in the next period.

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