Demand for Clear Regulations on Tobacco Tax in Indonesia

Dec.11.2022
Demand for Clear Regulations on Tobacco Tax in Indonesia
Indonesia's Kadin urges government to issue regulations on tobacco product consumption tax policy. Increased tax rates cause anxiety among business participants.

On Friday, September 12th, 2022, Adik Dwi Putranto, the Chairman of the East Java Chamber of Commerce in Indonesia (second from the right), participated in a discussion regarding the increase in consumption tax in the city of Surabaya.


Surabaya, Indonesia - The East Java Chamber of Commerce (Kadin) has called on the government, particularly through the Ministry of Finance, to immediately issue a regulation that will standardize the consumption tax policy for tobacco products (CHT).


Adik Dwi Putranto, the chairman of Kadin in East Java, stated in a written statement on Friday in Surabaya that this decision was made in response to the government's announcement in early November 2022 to increase the CHT tax rate by 10% in 2023 and 2024.


There are no clear rules for managing the detailed description of CHT tax rates. This has caused anxiety among business participants as they are unable to plan for purchasing consumption tax stamps in January 2023, which should have been possible as early as December 2022," he said.


Adik stated that the ambiguity of the consumption tax regulations is another issue that enterprise participants must face, along with the burden of increased consumption tax rates.


In fact, he continued, the cigarette consumption tax has increased significantly in recent years, which has become increasingly burdensome for participants in the tobacco products industry (IHT). In addition, there are currently no standard rules regarding tariffs that have been released.


This will undoubtedly disrupt business continuity, especially for companies that no longer have inventory consumption tax stamps, as they must stop operations until an unknown time. "This creates business uncertainty," said Adik.


Adik stated that the continuous distribution of PMK (a tobacco product regulation) is a problem that has significant impacts on the entire tobacco product supply chain. In line with this, the East Java Chamber of Commerce has also expressed its opinion on the government's decision to increase consumption tax for two years.


In line with this, Sulami Bahar, Chairman of the Cigarette Companies Association (Gapero), expressed his hope that the government can better support legitimate business actors in the IHT by implementing clear and transparent regulations.


Sulami states that tobacco companies are facing various pressures such as consumption tax and illegal cigarettes.


According to Sulami, a 10% growth in the next two years is considered to be very high, especially as we need to compete with the illegal cigarette market that is currently circulating.


Sulami expressed concern, stating, "We are worried that if this industry continues to face such pressure, they will close factories or, even worse, turn to illegal cigarettes. In reality, the government has rolled out the red carpet for them.


The owner of PT Surya Hutama Anugerah, Sandee Surya, who also serves in the governance department of the Indonesian Steam Entrepreneur Association (APVI), expressed disappointment with the delay of the PMK decision. The company had already established the plan, but due to the delay, it cannot be implemented immediately.


This is very inconvenient because we already have a plan prepared, but we are not allowed to proceed with P3C recitation yet. It is indeed difficult because slow decision-making has resulted in the concept being put on hold and ultimately postponed," said Sandy.


As such, the e-cigarette industry is hoping for a prompt decision on PMK in order to immediately execute the company's plans. He stated, "We believe that raising prices is already difficult enough, so delaying further is not an option. A decision must be made immediately.


Sandee added that it has been decided to increase the consumer tax for the electronic cigarette industry by 15% in 2023, which saw a growth of 17.5% last year. With this increase, it is bound to become even more significant.


2FIRSTS will continue to track and report on this topic, with further updates available on the "2FIRSTSAPP." Scan the QR code below to download the app.



Disclaimer

This article is provided solely for professional research, industry discussion, and informational purposes. Any references to brands, companies, products, technologies, or policies are made for factual reporting and analytical purposes only, and do not constitute endorsement, recommendation, promotion, or advertising by 2Firsts.

Nicotine-containing products, including but not limited to cigarettes, e-cigarettes, heated tobacco products, and nicotine pouches, carry significant health risks. Readers are responsible for complying with all applicable laws and regulations in their respective jurisdictions, including age restrictions and access limitations.

The information contained in this article should not be regarded as investment, legal, medical, regulatory, or commercial advice. While 2Firsts strives to ensure the accuracy and reliability of its content, it does not assume liability for any direct or indirect loss arising from errors, omissions, inaccuracies, or reliance on the information contained herein.

This article is not intended for individuals below the legal age for accessing tobacco or nicotine-related information in their jurisdiction.

 

Copyright Notice

This article is either original content produced by 2Firsts or content reproduced, translated, summarized, or adapted from third-party sources with attribution where applicable. The intellectual property rights of the original content remain with 2Firsts or the respective original rights holders.

No individual or organization may copy, reproduce, distribute, republish, modify, translate, or otherwise use this content without prior authorization. Any unauthorized use may result in legal action.

For copyright-related inquiries, corrections, or removal requests, please contact: info@2firsts.com.

 

AI-Assisted Translation and Editing Notice

Portions of this article may have been translated, edited, or reviewed with the assistance of artificial intelligence tools to improve efficiency and readability. Due to the limitations of AI-assisted translation and editing, discrepancies, omissions, or inaccuracies may exist when compared with the original source.

Where applicable, readers are advised to refer to the original source for the most complete and accurate information. If you identify any errors or believe that any content infringes upon your rights, please contact us at info@2firsts.com, and we will review and address the matter promptly.

Product | PIXL Adds 6ml PIXL 5K in UK Alongside 12ml PIXL 8000 as Vape Duty Takes Effect
Product | PIXL Adds 6ml PIXL 5K in UK Alongside 12ml PIXL 8000 as Vape Duty Takes Effect
Vaping brand PIXL has introduced the PIXL 5K reusable prefilled pod device in the UK, featuring a 2ml prefilled pod and a 4ml refill container with a combined e-liquid capacity of 6ml. The device uses 20mg/ml nicotine salt e-liquid and is advertised to deliver up to approximately 5,000 puffs. Available through UK retailers by August 2026, the PIXL 5K sits alongside the existing 12ml PIXL 8000. The UK's Vaping Products Duty took effect on October 1 at £0.22 per millilitre, producing theoretical duty amounts of £1.32 and £2.64 for the two products' respective full refill sets.
product
Oct.10
UK Extends Age-18 Rules to Zero-Nicotine Vapes and Nicotine Pouches From Oct. 29, Bans Vending Machines and Promotional Giveaways
UK Extends Age-18 Rules to Zero-Nicotine Vapes and Nicotine Pouches From Oct. 29, Bans Vending Machines and Promotional Giveaways
Key provisions of the UK's Tobacco and Vapes Act 2026 will take effect on Oct. 29, extending an age-18 sales restriction to all vaping and non-medicinal nicotine products. In England, Wales and Northern Ireland, the change brings zero-nicotine vapes within statutory age-of-sale rules and also covers products including nicotine pouches, strips and pearls. The law will also prohibit proxy purchasing for under-18s, consumer-facing vending machines, promotional giveaways and substantial discounts intended to promote vaping and nicotine products.
Regulations
Oct.10
PMI Expands U.S. ZYN Portfolio With New 1.5 mg and 8 mg Strengths, Moves Toward a Unified 20-Pouch-Per-Can Format
PMI Expands U.S. ZYN Portfolio With New 1.5 mg and 8 mg Strengths, Moves Toward a Unified 20-Pouch-Per-Can Format
Philip Morris International is expanding its U.S. ZYN nicotine pouch portfolio with new 1.5 mg and 8 mg strengths and plans to move its core 3 mg and 6 mg dry-pouch products from 15 to 20 pouches per can in the fourth quarter of 2026. ZYN ULTRA is also commercially available, with FDA authorization covering 10 products at 9 mg and one 11 mg Smooth product. PMI U.S. lists the new 1.5 mg and 8 mg strengths as commercially available, but as of September 10 they do not appear on the FDA’s public authorization list. Public materials do not identify which PMTA submissions cover the two new strengths or their current review status.
Sep.11
From Vuse, Velo and glo to AI Consulting: Former BAT Content Lead Launches Destreza
From Vuse, Velo and glo to AI Consulting: Former BAT Content Lead Launches Destreza
Former BAT global content lead Andy Parton has left the company and launched Destreza, a London-based AI-native marketing consultancy. Parton previously worked across BAT's New Category brands Vuse, Velo and glo and had also served as Global Brand Lead for Vuse Go. Destreza says it will advise consumer businesses on AI in brand strategy, operating models, capability and agency configuration, using specialist AI agents to support research, strategy and creative development. BAT reported £3.621 billion in New Category revenue in 2025.
Sep.22
As JUUL2 Wins FDA Authorization, Harm Reduction Journal Highlights the Role of Real-World Evidence in Nicotine Product Regulation
As JUUL2 Wins FDA Authorization, Harm Reduction Journal Highlights the Role of Real-World Evidence in Nicotine Product Regulation
A commentary published in the international open-access, peer-reviewed Harm Reduction Journal argues that randomized controlled trials remain central to evaluating smoking cessation efficacy but cannot alone capture real-world uptake, complete switching, longer-term use and population impact of non-combustible nicotine products such as e-cigarettes, heated tobacco and nicotine pouches. The authors frame impact as “reach × efficacy” and call for real-world evidence to complement RCTs. Three days after publication, the FDA authorized three JUUL2 products and highlighted complete switching among adult smokers in explaining its decision, providing a timely regulatory backdrop to the debate.
Sep.08
Philip Morris Malaysia Again Meets Religious Authority Over Cigarette Alternatives as Perlis Mufti Responds on Halal Criteria
Philip Morris Malaysia Again Meets Religious Authority Over Cigarette Alternatives as Perlis Mufti Responds on Halal Criteria
Philip Morris Malaysia Managing Director Naeem Shahab Khan met Perlis Mufti Mohd Asri Zainul Abidin on September 17 and presented the company's shift from conventional cigarettes toward alternative products. The mufti said a product could be considered halal if it is clean, its side effects are not harmful or can be controlled, and it does not involve excessive waste. His remarks did not mention IQOS or any other specific PMI product and did not amount to a new product-specific religious ruling. It was at least the second publicly reported engagement between Philip Morris Malaysia and a Malaysian religious institution over cigarette alternatives within six months.
Regulations
Sep.18 by 2Firsts Perspectives