Purbaya Provides Latest Update on New Excise Layer Plan for Illegal Cigarettes

Finance Minister Purbaya Yudhi Sadewa is continuing with plans to add a new layer to the Tobacco Products Excise tariff structure as an effort to curb the circulation of illegal cigarettes in Indonesia.

Nevertheless, the policy cannot be implemented in the near term because the government and the House of Representatives are still focused on deliberating the State Budget.

Purbaya revealed that the Ministry of Finance has actually prepared a draft regulation concerning the addition of a new cigarette excise layer. However, the policy still needs to be discussed with the House of Representatives before it can be implemented.

“We have not yet met with the DPR on that matter, Commission XI, that is. We will meet with Commission XI after this budget is completed,” he said when met by reporters at the parliament building in Jakarta on Thursday (27/8/2026).

Purbaya himself believes that the implementation of the new layer will be able to reduce the circulation of illegal cigarettes, which has so far been detrimental to the state.

Purbaya also admitted that he has met with illegal cigarette traders to emphasise the government’s efforts to eradicate illegal cigarettes through the new excise layer. If they continue to violate the rules, Purbaya will not hesitate to take action against the perpetrators of illegal cigarette trade.

“I told them, ‘I am giving you room there. Later, once it is finalised, you can enter that new layer. If you still mess around, I will come down hard on you!’”