Purbaya Confirms No Increase in Tobacco Excise Rates

JAKARTA. The excise rates on tobacco products are confirmed not to increase in 2026.

Quoting kontan.co.id, this confirmation was delivered by Finance Minister Purbaya Yudhi Sadewa after holding discussions with representatives from the tobacco industry.

During the meeting, according to Purbaya, the business players only requested that the excise rates remain unchanged. In fact, the government had initially planned to lower the current tobacco excise rates.

"Initially, I thought of lowering [the tobacco excise rates], but they said it’s already fine as is, so we’ll leave it," said Purbaya on Friday (26/9) in Jakarta.

The current tobacco excise rates are regulated under Minister of Finance Regulation (PMK) Number 96 of 2024 and Number 97 of 2024.

In addition to setting tobacco excise rates, these regulations also establish increases in the retail selling prices (HJE) of cigarettes, with varying rates of adjustment.

Previously, the government and the House of Representatives had agreed on the 2026 State Budget (APBN) framework.

Within the budget, the government has set a customs and excise revenue target of IDR336 trillion, which includes revenue from tobacco excise. (ASP/KEN)