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.

UK Vape Maker Riot Enters Clacton By-Election to Fight Government 'White Packaging' Proposals
UK Vape Maker Riot Enters Clacton By-Election to Fight Government 'White Packaging' Proposals
British e-liquid manufacturer Riot Labs has introduced a fictional “candidate” called Riot Man around the Clacton parliamentary by-election, seeking to mobilize consumers and retailers against parts of the UK government’s proposed restrictions on vape packaging, device appearance and retail displays. Riot Man is not listed as an official candidate.
Aug.12
Product | JTI Philippines Expands Nordic Spirit Nicotine Pouch Portfolio With Dark Pop and Red Frost
Product | JTI Philippines Expands Nordic Spirit Nicotine Pouch Portfolio With Dark Pop and Red Frost
JTI Philippines has expanded the Nordic Spirit nicotine pouch portfolio in the Philippines with two new variants, Dark Pop and Red Frost. Both products maintain the brand’s tobacco-free nicotine pouch positioning, with Dark Pop featuring a fizzy cola profile with citrus and sweet notes, while Red Frost combines cool mint with sweet red berry flavors. The two variants are now available through Philippine online retail channels.
Aug.18
JT Plans ¥800 Billion Investment in Heated Tobacco Over Three Years, Betting on Ploom as Second Growth Engine
JT Plans ¥800 Billion Investment in Heated Tobacco Over Three Years, Betting on Ploom as Second Growth Engine
Japan Tobacco Inc. (JT) CEO Takehiko Tsutsui said the company plans to invest about ¥800 billion (approximately US$5.4 billion) in heated tobacco products over three years through 2028, aiming to establish Ploom as a second growth engine after combustible cigarettes. Tsutsui said Ploom AURA helped JT increase its share of Japan’s heated tobacco market to 15.8% in the first quarter of 2026. Ploom products are now available in 29 markets, with Ploom AURA sold in 25 markets including Japan. JT also plans to continue its cigarette business while positioning its food operations, particularly frozen noodle products in North America, as another growth opportunity.
Jul.23
EU Tobacco Rules Face Pushback as Analysis Says 90% of Consultation Responses Raised Objections
EU Tobacco Rules Face Pushback as Analysis Says 90% of Consultation Responses Raised Objections
An analysis by We Are Innovation says more than 90% of over 82,000 responses to the European Commission’s public consultation on the Tobacco Products Directive revision raised at least one substantial objection to the proposed regulatory direction.
Jul.13
BREAKING | China’s Tobacco Regulator Summons iMiracle Over Suspected Compliance Breaches
BREAKING | China’s Tobacco Regulator Summons iMiracle Over Suspected Compliance Breaches
Based on public records reviewed by 2Firsts, this is the first time China’s State Tobacco Monopoly Administration has publicly announced regulatory talks with an e-cigarette company.
Jul.29
AIR Invests $20 Million in Greentank, Deepening Capital Ties Across the Vape Supply Chain
AIR Invests $20 Million in Greentank, Deepening Capital Ties Across the Vape Supply Chain
Nasdaq-listed AIR Global has invested $20 million in preferred shares of Canadian vaporization technology company Greentank, deepening a partnership established in 2023. AIR gains a board nomination right, access to new technologies, enhanced commercial terms and long-term supply assurances, while retaining an option to increase its stake. Greentank’s Quantum Chip platform powers Crown Switch and forms part of AIR’s planned U.S. PMTA dossier, linking capital investment more closely with product technology, regulatory evidence and supply-chain control.
Special Report
Jul.29