Illegal Cigarette Sales and Tax Evasion in Magelang, Indonesia

Regulations by 2FIRSTS.ai
Jan.11.2024
Illegal Cigarette Sales and Tax Evasion in Magelang, Indonesia
Illegal cigarette sales continue in Magelang City, Central Java, Indonesia, despite the government's increasing tobacco taxes.

According to a January 9 report by the Indonesian newspaper "KOMPAS," despite the government's ongoing efforts to increase cigarette taxes, there is still illegal sale of cigarettes occurring in Magelang City, located in Central Java Province. In these locations, some illegal cigarettes are using counterfeit tax stamps.

 

Since January 2024, the government has implemented an upgraded tobacco tax rate policy. According to Regulation No. 191 issued by the Ministry of Finance in 2022, the tobacco tax for traditional cigarettes has increased on average by 10%, while the tax rate for e-cigarettes has risen by an average of 15%. Additionally, the average tax rate for other tobacco products has increased to 6%.

 

This policy has prompted some smokers to reconsider their expenses, such as 33-year-old Fajar Dharmawan. He stated that due to the increase in tobacco taxes in 2021, he has turned to the relatively more affordable option of e-cigarettes.

 

Although this tax policy may seem to swiftly restrain user behavior, its objective is not only to control health issues caused by cigarettes but also to increase government revenue.

 

The Indonesian tobacco industry aims to achieve a tax revenue target of 230.4 trillion rupees in 2023, accounting for 95% of the total tobacco tax revenues for that year.

 

We welcome news tips, article submissions, interview requests, or comments on this piece.

Please contact us at info@2firsts.com, or reach out to Alan Zhao, CEO of 2Firsts, on LinkedIn


Notice

1.  This article is intended solely for professional research purposes related to industry, technology, and policy. Any references to brands or products are made purely for objective description and do not constitute any form of endorsement, recommendation, or promotion by 2Firsts.

2.  The use of nicotine-containing products — including, but not limited to, cigarettes, e-cigarettes, nicotine pouchand heated tobacco products — carries significant health risks. Users are responsible for complying with all applicable laws and regulations in their respective jurisdictions.

3.  This article is not intended to serve as the basis for any investment decisions or financial advice. 2Firsts assumes no direct or indirect liability for any inaccuracies or errors in the content.

4.  Access to this article is strictly prohibited for individuals below the legal age in their jurisdiction.

 

Copyright

 

This article is either an original work created by 2Firsts or a reproduction from third-party sources with proper attribution. All copyrights and usage rights belong to 2Firsts or the original content provider. Unauthorized reproduction, distribution, or any other form of unauthorized use by any individual or organization is strictly prohibited. Violators will be held legally accountable.

For copyright-related inquiries, please contact: info@2firsts.com

 

AI Assistance Disclaimer

 

This article may have been enhanced using AI tools to improve translation and editorial efficiency. However, due to technical limitations, inaccuracies may occur. Readers are encouraged to refer to the cited sources for the most accurate information.

We welcome any corrections or feedback. Please contact us at: info@2firsts.com

Imperial Brands Pulls myblu Vape Business From U.S., Citing Prolonged FDA Approval Process
Imperial Brands Pulls myblu Vape Business From U.S., Citing Prolonged FDA Approval Process
Imperial Brands said it will phase out its myblu vaping business in the United States, citing prolonged FDA approval timelines for new vape products. The company said it will instead focus on modern oral nicotine products in the U.S., including the expansion of its Zone brand and new flavors. While overall next-generation product revenue continued to grow, revenue from the category in the Americas declined sharply.
May.12
Product | JT Upgrades with2 Infused Tobacco Capsules With Double-Size BIG PACK
Product | JT Upgrades with2 Infused Tobacco Capsules With Double-Size BIG PACK
Japan Tobacco Inc. (JT) announced that it will introduce a BIG PACK version of all five tobacco capsule variants designed for its with2 infused tobacco system. Scheduled for release in Japan on August 4, 2026, the refreshed packaging doubles the contents from five capsules and one cartridge to ten capsules and two cartridges while maintaining the same flavors and formulations
News
Jun.26 by 2Firsts Perspectives
PMI Partners With Italian Tenor Andrea Bocelli to Launch “Believe. Further” Platform
PMI Partners With Italian Tenor Andrea Bocelli to Launch “Believe. Further” Platform
Philip Morris International (PMI) and Italian tenor Andrea Bocelli have launched “Believe. Further,” a multi-year communications platform targeting cultural, institutional and business audiences in Europe, as PMI says smoke-free products accounted for 43% of its net revenues as of the first quarter of 2026.
Jul.01
FDA Posts Environmental Assessment for Nicotine Pouches, May Influence Future PMTA Reviews
FDA Posts Environmental Assessment for Nicotine Pouches, May Influence Future PMTA Reviews
The U.S. Food and Drug Administration released a programmatic environmental assessment covering nicotine pouches and other oral nicotine products, concluding that their overall environmental impact is generally minimal.
Regulations
May.22
2Firsts Interview | InterTabac 2026 Adapts to a More Complex Tobacco and Nicotine Market
2Firsts Interview | InterTabac 2026 Adapts to a More Complex Tobacco and Nicotine Market
As InterTabac 2026 approaches, Sabine Loos, Managing Director of Westfalenhallen Unternehmensgruppe, tells 2Firsts that global tobacco trade fairs are evolving beyond product display. With new nicotine categories, shifting regulation and more complex supply chains reshaping the industry, InterTabac is positioning itself as a platform for market insight, regulatory discussion and global business connection.
Special Report
Jul.02
Trump’s Tobacco Investments and Industry Donations Draw Scrutiny as FDA Eases Vape and Nicotine Pouch Rules
Trump’s Tobacco Investments and Industry Donations Draw Scrutiny as FDA Eases Vape and Nicotine Pouch Rules
A report by KFF Health News says that as the Trump administration pursued a series of policies favorable to the nicotine and tobacco industry, President Donald Trump increased his holdings in tobacco companies while benefiting from substantial industry-linked political donations, prompting questions from public health advocates about potential conflicts of interest and regulatory direction.
Jun.12