Indonesia’s Finance Ministry Confirms: Tobacco Tax Up 10%, E-cigarettes Up 15%

Indonesia’s Directorate General of Customs and Excise (DJBC) under the Ministry of Finance has confirmed that tobacco excise will rise by 10% in 2024, while e-cigarettes will increase by 15%.

Nirwala Dwi Heryanto, Director of Communication and User Guidance at Indonesia’s Directorate General of Customs and Excise (DJBC), said the 2024 tobacco excise policy will continue to follow a multi-year policy framework. This policy is reflected in Ministry of Finance Regulation (PMK) No. 191 of 2022 concerning excise rates on cigarettes, cigars, shredded tobacco, and sliced tobacco.

“Overall, cigarette excise rates will increase by an average of 10%, while e-cigarettes will rise by 15%,” Nirwala said in an interview with VIVA.

Nirwala said the 2024 tobacco excise policy takes into account four pillars of tobacco excise, including consumption control, industry sustainability, revenue targets, and combating illegal tobacco products.

Previously, Askolani, Director General of Customs and Excise at Indonesia’s Ministry of Finance, said they had prepared about 17 million excise stamps for demand in January 2024. This is in line with the plan to increase tobacco excise rates in 2024.

Askolani said at the APBN KiTA press conference: “At present, we have prepared around 17 million excise stamps for demand in January 2024. This is in line with orders that have already been placed by many tobacco industry players through customs service offices in various regions.”