New Cigarette Excise Layer Plan Yet to Be Implemented, Here's Purbaya's Explanation

The government is continuing with its plan to add a new layer to the tobacco excise tariff structure as part of efforts to suppress the circulation of illegal cigarettes in Indonesia, according to Finance Minister Purbaya Yudhi Sadewa. The policy, however, cannot be implemented in the near future because the government and the House of Representatives have been focused on discussing the state budget. Purbaya revealed that the Ministry of Finance had already prepared a draft regulation related to the additional excise layer, but it must still be discussed with the House before it can be implemented. “We were busy with the state budget, still busy discussing the state budget. Now that it is finished, perhaps we will go and see them later,” he said following a press conference. While confirming that discussions will resume soon, Purbaya declined to disclose the proposed tariff rate for the new layer, stating that the figures are still part of the ongoing discussions with the House. The government had previously targeted the new excise layer policy to take effect from June 2026, but the regulation has yet to be issued as of mid-August.