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.

Kumulus Vape2026 H1 Revenue Falls 8.3% but Profit Rises 24% as B2B Weakens and Consumer Channels Grow
Kumulus Vape2026 H1 Revenue Falls 8.3% but Profit Rises 24% as B2B Weakens and Consumer Channels Grow
French vaping company Kumulus Vape reported first-half 2026 revenue of €25.5 million, down 8.3% year over year, as its core B2B distribution business fell 11% to €21.6 million. B2C and store-network revenue rose 5.6% and 17.8%, respectively. Commercial margin increased to 26.3% from 21.7%, while net profit rose 24.1% to €0.8 million. The company attributed the profitability improvement to catalog optimization, logistics restructuring and the ramp-up of Labster, its in-house production unit for proprietary brands.
Market
Sep.17 by 2Firsts Perspectives
Juul Sublicense Reshapes Vuse Alto Patent Bill as Court Ends R.J. Reynolds’ 5.25% Royalty Obligation to Altria
Juul Sublicense Reshapes Vuse Alto Patent Bill as Court Ends R.J. Reynolds’ 5.25% Royalty Obligation to Altria
According to Law360 on August 31, 2026, a federal judge in North Carolina ruled that a patent sublicense between R.J. Reynolds Vapor Co. and Juul Labs Inc. relieves Reynolds of its obligation to continue paying royalties to Altria Client Services LLC over Vuse Alto. A jury had previously found that Vuse Alto infringed three Altria patents and awarded approximately $95.2 million in past damages, after which Reynolds was ordered to pay an ongoing royalty equal to 5.25% of positive net sales. The new ruling finds that a valid sublicense can eliminate future infringement, potentially ending what Altria described as hundreds of millions of dollars in future royalties.
Sep.01
UK HMRC Urges Public to Report Suspicious Vape Shops in Crackdown on Tax Fraud, Money Laundering and Illicit Tobacco Sales
UK HMRC Urges Public to Report Suspicious Vape Shops in Crackdown on Tax Fraud, Money Laundering and Illicit Tobacco Sales
HM Revenue & Customs is urging members of the public to report vape shops, barber shops and other high-street businesses suspected of tax fraud, money laundering or other illegal activity, with informants not required to provide personal details. HMRC plans more than 30,000 interventions in 2026-27 targeting tax fraud, organised crime and illicit activity, including the sale of illegal vapes and tobacco. The push forms part of a broader UK effort to tackle organised crime on high streets, backed by a £30 million government enforcement programme.
Regulations
Aug.17 by 2Firsts Perspectives
Bret Koplow Takes Permanent Charge of FDA Tobacco Center After Pushing Faster PMTA Reviews, as HHS Emphasizes Innovation and Access to Lower-Risk Alternatives
Bret Koplow Takes Permanent Charge of FDA Tobacco Center After Pushing Faster PMTA Reviews, as HHS Emphasizes Innovation and Access to Lower-Risk Alternatives
The U.S. Department of Health and Human Services has named Bret Koplow permanent director of the FDA’s Center for Tobacco Products, ending his period as acting chief. Koplow has spent years working on tobacco regulation, law and policy inside the FDA and, while serving as acting director, pushed for faster PMTA reviews and nicotine pouch review pilots. HHS also said CTP will prioritize innovation and access to less harmful alternatives for adult smokers while continuing efforts to protect youth.
Sep.09
After Apple Business Decline, South Korea’s ITM Semiconductor Expands KT&G Vape Supply Chain as Vape Revenue Rises 24.8%
After Apple Business Decline, South Korea’s ITM Semiconductor Expands KT&G Vape Supply Chain as Vape Revenue Rises 24.8%
South Korean electronics component supplier ITM Semiconductor is reshaping its business portfolio after a decline in Apple-related protection circuit business, expanding its supply of vape devices and cartridges to KT&G. According to News1 on August 18, 2026, ITM’s vape-related revenue rose 24.8% year on year to 75.5 billion won in the first half of 2026. The company began mass production of vape devices at its Cikarang, Indonesia facility in January 2026, strengthening export manufacturing capacity. Meanwhile, Samsung-related protection circuit sales continued to grow, providing support during the transition.
Aug.20
Australia Brings in Deloitte to Support Illicit Tobacco and Vape Enforcement Across Data, Processes and Project Delivery
Australia Brings in Deloitte to Support Illicit Tobacco and Vape Enforcement Across Data, Processes and Project Delivery
Australia’s Department of Home Affairs has hired Deloitte to provide data analytics, business-process, communications and project-delivery support to the Office of the Illicit Tobacco and E-Cigarette Commissioner. The government says Deloitte personnel do not provide policy advice to the Commissioner or the Australian government, with policy development and decision-making remaining with public officials. The arrangement has nevertheless drawn scrutiny because Deloitte has previously provided professional services to several tobacco and vaping companies.
Sep.03