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.

Product | Philip Morris Korea Launches TEREA Limona Pearl, Expanding Fresh Blend Capsule Lineup to Five
Product | Philip Morris Korea Launches TEREA Limona Pearl, Expanding Fresh Blend Capsule Lineup to Five
Philip Morris Korea launched TEREA Limona Pearl in South Korea on August 31, 2026, expanding the TEREA Fresh Blend capsule tobacco stick lineup from four variants to five. Designed for the IQOS ILUMA series, the new stick combines a capsule with what the company calls a Fresh Filter. Philip Morris Korea describes the product as offering an aromatic, refreshing flavor profile with a cooling sensation, with an additional fresh note released when the capsule is crushed. The recommended retail price is KRW 4,800 per pack, with sales through IQOS stores and convenience stores nationwide. No reliable evidence has been found that the same Limona Pearl SKU was previously officially launched in another major IQOS market.
Sep.01
Product | BAT Expands VELO Travellers’ Collection With Mexico, Spain and Sweden Summer Edition Nicotine Pouches
Product | BAT Expands VELO Travellers’ Collection With Mexico, Spain and Sweden Summer Edition Nicotine Pouches
British American Tobacco (BAT) Global Travel Retail has expanded the VELO Travellers’ Collection with three new Summer Editions: Mexico, Spain and Sweden. Inspired by destination themes, the new nicotine pouch variants are designed for global travel-retail channels. The launch further strengthens VELO’s positioning as a travel-retail exclusive product collection.
Aug.27
Charlie’s Bets on Age-Gating and 678 PMTA Assets as U.S. Vape Enforcement Landscape Shifts
Charlie’s Bets on Age-Gating and 678 PMTA Assets as U.S. Vape Enforcement Landscape Shifts
Charlie’s Holdings said in its latest shareholder letter that it is moving to commercialize PACHA products and monetize its PMTA assets as the FDA changes enforcement priorities for unauthorized ENDS products. Thirty PACHA SKUs were previously tentatively identified for a proposed public list of products that the FDA generally does not intend to prioritize for enforcement. Charlie’s is also preparing test-market sales of age-gated flavored disposables and says it currently holds 678 PMTA-related product assets while seeking additional strategic transactions and partnerships.
Sep.11
Yinghe-Controlled Vape Maker SKE Ordered to Post £569,039 Security as It Pursues Crystal Bar Design Infringement Case in UK
Yinghe-Controlled Vape Maker SKE Ordered to Post £569,039 Security as It Pursues Crystal Bar Design Infringement Case in UK
The UK High Court has ordered Chinese vape manufacturer Shenzhen SKE Technology to provide £569,039 ($776,000) in security for costs in its design infringement proceedings against Vapepen London and other defendants over its Crystal Bar vape product. The court did not accept the defendants’ main argument that recovering costs from a China-based company would face significant enforcement obstacles, but found that SKE had not sufficiently disclosed its own financial position. The order is procedural and does not determine the underlying infringement claims.
News
Aug.21
Malaysia’s Vape Rules Face Review as Health Minister Dzulkefly Ahmad Addresses Dropped Nicotine Appeal
Malaysia’s Vape Rules Face Review as Health Minister Dzulkefly Ahmad Addresses Dropped Nicotine Appeal
According to Free Malaysia Today on August 26, 2026, Malaysia’s Health Minister Dzulkefly Ahmad said the Health Ministry would explain the government’s decision to withdraw its appeal against a High Court ruling involving the exemption of liquid nicotine used in vape products from the Poisons List. The High Court previously ruled that the exemption decision was irrational. Dzulkefly said withdrawing the appeal did not mean the government would stop regulating vaping, and that future regulatory approaches would continue under existing legal frameworks.
Aug.28
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