Plan to Introduce New Cigarette Excise Scheme, Finance Minister Purbaya Receives Praise

Jakarta – Cigarette entrepreneur and owner of Bandar Rokok Nusantara Global Group (Barong Group), HRM Khalilur R Abdullah Sahlawiy, commonly known as Gus Lilur, believes the government is beginning to show positive steps in responding to various issues in the tobacco sector, particularly regarding illegal cigarettes, excise governance, and the future of the people’s cigarette industry.

According to him, this momentum must be maintained and translated into concrete policies that favour farmers and small business actors.

Gus Lilur expressed appreciation and thanks to Finance Minister Purbaya Yudhi Sadewa for the government’s plan to issue a new excise layer scheme, which is considered more adaptive to the conditions of the people’s cigarette industry.

In his view, this policy serves as an important signal that the government is starting to recognise the need for differentiated treatment between large industries and small and medium-sized enterprises.

“We appreciate and thank Finance Minister Mr Purbaya for the plan to issue a new layer of excise tax for people’s cigarettes. This is a positive step and has been eagerly awaited by small business actors,” said Gus Lilur in his statement on Tuesday, 12 May 2026.

He assessed that many small and medium-sized cigarette enterprises have struggled to enter the legal pathway due to an excise structure that is too burdensome and disproportionate to their business capacity.

“If this new layer is truly implemented, it could become an entry point for the birth of a healthy, legal, and strong people’s cigarette industry,” he said.

In addition, Gus Lilur reiterated the importance of comprehensive transformation for illegal cigarette actors to enter the legal system.

According to him, a punitive approach alone will not suffice to resolve the issue if not accompanied by a realistic transition pathway.

“The state must open up transformation opportunities. Illegal cigarette entrepreneurs must be directed to enter the legal pathway, not just prosecuted,” he stated.

He assessed that some illegal cigarette actors actually possess production capacity and market access, but are hindered by high costs and the complexity of the licensing system.

Therefore, according to Gus Lilur, more adaptive excise policies must be followed by clear transformation programmes.

“If the state wants to curb illegal cigarettes, the state must also provide an accessible legal pathway for small business actors,” he said.