September 26, 2025 | 07:06 pm
TEMPO.CO, Jakarta - Indonesian Finance Minister Purbaya Yudhi Sadewa said the government will not raise its tobacco excise tax rates on next year. The minister made the statement after a meeting with the Association of Indonesian Cigarette Producers (Gappri) today, Friday, September 26, 2025.
Purbaya said the meeting involved several cigarette producers who gave various inputs, including Djarum, Gudang Garam, and Wismilak.
Purbaya then asked these companies whether changing the tobacco tax rates in 2026 was necessaty. "They said to keep it unchanged, so I'm not going to. I initially thought about lowering the rates," Purbaya told media crew at the Ministry of Finance office in Jakarta, on Friday, September 26, 2026.
"So, in 2026, we will not raise the excise tax rates," he added.
Purbaya said the ministry is making efforts to crack down on illegal goods, both from within and outside the country. The Finance Ministry also plans to create a special program to allow illegal goods to enter the system through an industrial zone for tobacco products.
"There will be machinery, warehouses, factories, and customs offices in one place. It will be a centralized one-stop service," said Purbaya, adding that such a concept is already implemented in Kudus, Central Java, and in Pare-Pare, South Sulawesi.
The program, Purbaya said, will be expanded to other cities.
According to Purbaya, this program is designed to attract illegal tobacco producers to enter the special zone and pay taxes accordingly. "So, we're not only defending big companies, but smaller ones as well," he said.
In the 2026 State Budget posture, the target for customs and excise revenues increased from Rp334.3 trillion to Rp336 trillion. However, Purbaya previously argued that a rate hike is not necessary to boost excise revenues.
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