New Cigarette Excise Tier to Be Discussed After 2027 State Budget Law Completed

Finance Minister Purbaya Yudhi Sadewa has confirmed that a new tier of tobacco excise duty, designed to encourage the illegal cigarette industry to enter the legal ecosystem, will be implemented this year. “It will be implemented this year, this year,” Purbaya stated during a press conference at his office in Jakarta on Tuesday (21/7/2026). However, he stressed that the details of the regulation must first be discussed with the House of Representatives (DPR) after the 2027 State Budget Law is completed. According to him, the discussion on the new cigarette excise tier will take place soon. “We will still meet with the DPR. Right now, we are still handling the State Budget Law and other matters. Once that is finished, we will face the DPR,” he said.