RUKKI Criticises Proposal for Additional Tobacco Excise Layer

The Indonesian Health Policy Space (RUKKI) has criticised the renewed discourse on adding a new layer to the tobacco product excise or cigarette excise tariff structure, prepared by Finance Minister Purbaya Yudhi Sadhewa. RUKKI Executive Director Mouhamad Bigwanto assessed that the plan is not aligned with the goal of eradicating illegal cigarettes, as the addition of layers could potentially make cheap cigarettes even easier to obtain. RUKKI views this plan as illustrating a policy paradox in Indonesia where violations are not punished but can be accommodated through fiscal policy schemes. “Ironically, in policy practice in Indonesia, violations risk being ‘rewarded’ with incentives rather than sanctions. The addition of an excise layer shows how policies that should suppress illegal cigarettes could instead potentially accommodate them,” Bigwanto said in a written statement on Thursday, 9 April 2026. According to Bigwanto, the plan could obscure the root problems of illegal cigarette circulation and benefit parties that should be held accountable. He expressed his opinion based on trends in practices in other countries where the tobacco industry exploits the issue of illegal cigarettes for personal gain. The latest report from the Global Center for Good Governance in Tobacco Control (GGTC), he said, shows that the narrative of illegal cigarette trade is systematically used to influence policy direction and hinder the implementation of effective tobacco control. Bigwanto stated that policies not grounded in the principle of law enforcement are highly risky in opening up spaces for weak governance, including the emergence of corruption and conflicts of interest. He encouraged the government to boldly enforce the law consistently while closing loopholes that have long been exploited by the tobacco industry. “If this policy is ineffective and illegal cigarettes remain rampant, is the solution taken to add another new layer?” Bigwanto said.