Purbaya's Plan to Introduce New Excise Layer Scheme Appreciated
Business owners in the cigarette sector have expressed appreciation for Finance Minister Purbaya Yudhi Sadewa’s plan to issue a new excise layer scheme for the people’s cigarette industry. Owner of Bandar Rokok Nusantara Global Group (BARONG Group), HRM Khalilur R Abdullah Sahlawiy, considers this policy a response to the aspirations of small and medium enterprises (SMEs) in the tobacco sector, which have long been hindered by a heavy excise structure. He views the new layer scheme as an entry point to strengthen a more inclusive national cigarette industry ecosystem.
“We appreciate and thank Finance Minister Mr Purbaya for the plan to issue a new layer of excise on people’s cigarettes. This is a positive step that has been eagerly awaited by small business actors to more easily enter the legal pathway,” he stated on Tuesday (12/5/2026).
Regarding the proliferation of illegal cigarettes, he stressed that the government cannot rely solely on repressive approaches or crackdowns. In his view, the state must provide realistic transition pathways for illegal cigarette business actors to transform into legal business units.
He opined that many illegal business actors actually possess significant market potential and production capacity, but are obstructed by the complexity of the licensing system and disproportionate excise burdens.
“The state must open up transformation spaces. Illegal cigarette entrepreneurs must be directed into the legal pathway, not just punished. If the aim is to curb illegal cigarettes, the state must provide an affordable legal route for the small people,” he asserted.
He emphasised that all these regulatory policies must culminate in the realisation of the Madura Tobacco Special Economic Zone (KEK). The KEK is seen as a comprehensive solution to integrate the interests of farmers, industry, and supervision within a unified system.
According to him, the existence of the KEK will transform Madura’s position from merely a raw material producer into an independent national tobacco industry hub. He hopes the central government can promptly realise concrete steps for this.