Indonesia to Increase Tobacco and E-cigarette Taxes in 2023

Dec.22.2022
Indonesia to Increase Tobacco and E-cigarette Taxes in 2023
Indonesia's tobacco and e-cigarette prices may increase from Jan 2023 due to increased taxes, aimed at protecting children.

Starting from January 2023, the prices of some tobacco products and e-cigarettes in Indonesia may increase. This comes after the Indonesian government officially raised the consumption tax on tobacco cigarettes and e-cigarettes or vaping for the next two years (January 2023 to January 2024) for the second time.


Indonesia's Finance Minister, Sri Mulyani, has revealed that there will be different increases in taxes for cigarettes and electronic cigarettes.


In today's decision, the President agreed to increase the cigarette consumption tax by 10% in 2023 and 2024," he said.


At the same time, the increase in the consumption tax of electronic cigarettes reached 15%.


The increase of cigarette consumption tax naturally affects the retail price of cigarettes. So, how much will the retail price of cigarettes be after the tax increase?


Cigarette Retail Price List


The provision to increase the consumption tax on tobacco products is stated in the Ministry of Finance (PMK) Regulation No. 191 of 2022, which pertains to the second amendment of PMK No. 192 of 2021. This includes levying a consumption tax on tobacco products in the form of cigarettes, cigars, tobacco leaves in the form of either cigarettes or Klobot, and tobacco flakes.


The regulation also stipulates the post-price increase for retail cigarettes effective from January 2023.


Mechanism Dianxiang Cigarettes (SKM)


For Group I, the minimum retail price is 2,055 Indonesian rupiahs per piece (equivalent to approximately 0.92 yuan in Chinese currency). For Group II, the minimum retail price is 1,255 Indonesian rupiahs per piece (equivalent to approximately 0.56 yuan in Chinese currency).


2. SPM cigarettes.


For group I, the minimum retail price is 2,165 Indonesian Rupiahs per unit (equivalent to approximately 0.97 yuan Renminbi). For group II, the minimum retail price is 1,295 Indonesian Rupiahs per unit (equivalent to approximately 0.58 yuan Renminbi).


3. The SKT or SPT cigarette brand.


For Group I, the minimum retail price ranges from 1,250 (approximately RMB 0.56) to 1,800 Indonesian rupiahs (approximately RMB 0.81) per unit. For Group II, the minimum retail price is 720 Indonesian rupiahs (approximately RMB 0.32) per unit. For Group III, the minimum retail price is 605 Indonesian rupiahs (approximately RMB 0.27) per unit.


Hand-rolled clove cigarettes (SKTF) or hand-rolled white cigarettes (SPTF) filtered manually.


The minimum retail price is 2,055 Indonesian Rupiah per unit, which is approximately 0.92 yuan in Chinese currency.


Frankincense and rhubarb-flavored cigarettes (KLM)


For Group I, the minimum retail price is 860 Indonesian rupiahs (approximately 0.39 Chinese yuan). For Group II, the minimum retail price is 200 Indonesian rupiahs (approximately 0.09 Chinese yuan).


Tobacco Information System (TIS)


The minimum selling price is 55-180 Indonesian rupiah (approximately 0.02-0.08 yuan in Chinese currency). This price has remained unchanged.


The types of cigarette leaves or Klobot (KLB)


The minimum selling price is 290 Indonesian rupiahs, which is equal to approximately 0.13 Chinese yuan.


Cathode Ray Tube (CRT) in English, is a type of cigar-shaped electronic device that was commonly used in older televisions and computer monitors.


The minimum selling price ranges from 495 to 5,500 Indonesian rupiah (approximately 0.22-2.47 yuan). The prices remain unchanged.


Reasons for the Increase in Cigarette Tax


The price of cigarette excise taxes has been increasing every year. According to Finance Minister Silvia Mulyani, there is good reason to raise these taxes.


He explained that the increase in the cost of cigarette consumption tax from 2023 to 2024 is related to the transformation of the tobacco products industry.


The reason for raising tobacco consumption taxes is also to protect children from the influence of electronic cigarettes.


This is an issue of protecting children as infiltration comes with various flavors (flavor variants)," said Silvia Muliāni.


As the cost of cigarette consumption tax increases, Indonesian Finance Minister Sri Mulyani hopes to control the level of consumption of tobacco products presented in cigarette form, especially among consumers aged 10-18 who are particularly vulnerable.



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.

U.S. House Defense Bill Includes Pilot Review of Vapes, Nicotine Pouches and Heated Tobacco for Military Smokers
U.S. House Defense Bill Includes Pilot Review of Vapes, Nicotine Pouches and Heated Tobacco for Military Smokers
On July 23, 2026, the U.S. House of Representatives passed its version of the Fiscal Year 2027 National Defense Authorization Act (NDAA), which includes Section 707 provisions requiring the Department of Defense to evaluate tobacco use and nicotine alternatives among military personnel. The pilot program would examine products including vapes, nicotine pouches and heated tobacco products, primarily among active-duty service members who continue using combustible tobacco. The provision is a policy evaluation effort, not an authorization for military vaping promotion or a ban on vape products.
Jul.28
China’s Zhengzhou Tobacco Research Institute develops end-to-end heated tobacco analysis to trace aerosol compound origins
China’s Zhengzhou Tobacco Research Institute develops end-to-end heated tobacco analysis to trace aerosol compound origins
The Zhengzhou Tobacco Research Institute of China National Tobacco Corporation has filed a patent application for an end-to-end method to analyze the migration and transformation of chemical compounds in heated tobacco products. Using GC-Orbitrap/MS non-targeted analysis, the method compares tobacco substrate and aerosol samples to distinguish compounds transferred directly from the substrate from those newly formed during heating, while also calculating transfer rates. In an example involving nine heated tobacco products, the patent identified 17 newly formed thermal decomposition compounds and 38 transferred compounds.
Aug.13
Global Tobacco Control Faces Regional Adaptation Test as Nicotine Markets Evolve, Asian Specialist Says
Global Tobacco Control Faces Regional Adaptation Test as Nicotine Markets Evolve, Asian Specialist Says
As e-cigarettes, heated tobacco products and nicotine pouches expand across global markets, a central question is gaining urgency: can tobacco control rely on a universal policy model? In an interview with 2Firsts, Asian public health and addiction medicine specialist Dr. Rashidi Mohamed bin Pakri Mohamed says Western experience remains relevant, but policies must be adapted to local culture, healthcare systems, enforcement capacity, illicit markets and clinical evidence.
Jul.08
Product | KT&G to Launch lil Tonino Lamborghini in South Korea, Bringing 3-Second Heat-Up to New HTP Platform
Product | KT&G to Launch lil Tonino Lamborghini in South Korea, Bringing 3-Second Heat-Up to New HTP Platform
KT&G will launch the lil Tonino Lamborghini heated tobacco device in Seoul on September 15, 2026. The product introduces a new heating technology called Flashwave Heating, which uses microwaves to heat tobacco sticks internally and delivers a manufacturer-rated heat-up time of about three seconds. The device features an all-metal aluminum body, a color display and a dedicated GUI, and launches alongside a new line of NAU tobacco sticks that are incompatible with existing lil consumables. Korean media describe the product as KT&G's first new heated tobacco platform since lil AIBLE was introduced in 2022.
Aug.31
Product | HQD SiSA 80K Enters the U.S. Market With a Hookah-Inspired Approach to the High-Capacity Disposable Segment
Product | HQD SiSA 80K Enters the U.S. Market With a Hookah-Inspired Approach to the High-Capacity Disposable Segment
The HQD SiSA 80K Hookah Disposable Vape has appeared across U.S. and cross-border online retail channels. The device comes prefilled with 28ml of e-liquid, uses a 5% nicotine salt configuration and carries a brand claim of up to 80,000 puffs. Beyond puff count, the product differentiates itself through hookah-inspired features including adjustable airflow, a flowing-water sound effect and flavor options associated with traditional hookah consumption.
Aug.18
Trump Picks White House Health Policy Aide Heidi Overton to Lead FDA, Pending Senate Confirmation
Trump Picks White House Health Policy Aide Heidi Overton to Lead FDA, Pending Senate Confirmation
U.S. President Donald Trump has chosen White House health policy aide Heidi Overton to lead the Food and Drug Administration, Bloomberg reported, citing a person familiar with the matter. Overton currently works on health policy at the White House and previously held a senior role at the America First Policy Institute. If confirmed by the Senate, she would take over an FDA that has experienced months of senior-level turnover. The agency regulates products representing roughly one-fifth of U.S. consumer spending, including e-cigarettes, drugs, vaccines and much of the food supply.
News
Aug.19