Purbaya Issues Deadline: Illegal Cigarettes Must Switch to Legal by May at the Latest!

Jakarta, CNBC Indonesia - Finance Minister Purbaya Yudhi Sadewa has urged producers of illegal cigarettes to switch to legal status by May 2026 at the latest. This target has been set by Purbaya to increase state revenues.

“Clearly, we want it to be running by May at the latest, so that the income comes to us,” Purbaya stated, quoted on Monday (13/4/2026).

Purbaya explained that the transition scheme could be achieved simply by paying a specific type of excise duty. This would allow cigarette producers to comply with excise regulations.

If illegal cigarette entrepreneurs do not comply, Purbaya said he would not hesitate to shut down illegal cigarette factories if they fail to switch to the legal market.

“I can really ban illegal cigarettes, I’ll close them for real because we’ve given them a chance to operate in the legal market. If they don’t want to, we’ll close them,” he emphasised.

In line with this, Purbaya said the legalisation process for illegal cigarettes is currently being discussed with the DPR. Purbaya hopes this policy can be accepted by the DPR and quickly implemented by the government.

“Soon we’ll discuss with the DPR how best to do it, but the proposal is already complete. It’s hoped that it can be accepted by the DPR, and then we’ll implement it,” he said.

Previously, Purbaya said he had teamed up with Coordinating Minister for Political, Legal, and Security Affairs Djamari Chaniago to combat the backers of illegal cigarette producers and distributors.

He stated that cooperation with the Coordinating Minister for Polkam in cracking down on illegal cigarette actors is important because he has received information that they have backing, which has allowed them to operate easily so far.

“If what people in the field say is true, there’s always backing,” Purbaya remarked.