Purbaya Has Submitted Plan for Additional Excise Duty on Cigarettes

Finance Minister Purbaya Yudhi Sadewa has stated that the policy to add a new layer to the Tobacco Products Excise tariff is still under review and discussion with the House of Representatives.

“The tariff cannot be announced yet because it must first be discussed with the DPR. There has been no official discussion, but we have spoken and will request time for discussion,” Purbaya said in Tangerang on Friday (14/7/2026).

He said that the process of discussing the tobacco excise tariff policy is still awaiting a formal discussion schedule. However, his ministry has completed the proposal for the additional tobacco excise layer.

Meanwhile, regarding the implementation of the Excise on Packaged Sweetened Beverages, which had been postponed, the Ministry of Finance stated that its status remains unfinalised and has not been included in the main state budget calculations.

“It is not final, it is still being discussed. It is not in the state budget calculation. If there is upside potential,” he said.

Purbaya also touched on the widespread enforcement against illegal imported goods, explaining that the operational budget for Customs and Excise will be increased to combat smuggling.

“Indeed, Customs’ operational costs will be increased so that they can be more active in catching smuggling and other business fraud in Indonesia,” he explained.

He claimed that there has been a fairly significant improvement in Customs performance, as seen from growing state revenue and a drastic decline in the circulation of illegal cigarettes.

“These results show that there has been a significant improvement in Customs performance, both in terms of seizures and revenue, which has begun to grow. Illicit cigarettes have also decreased significantly,” he said.