Legal Tariffs for Illegal Cigarettes - Tempo.co English

TEMPO.CO, Jakarta - Amid President Prabowo Subianto's meeting with executives of the Indonesian Chamber of Commerce and Industry (Kadin), Adik Dwi Putranto spoke with Finance Minister Purbaya Yudhi Sadewa. During the meeting at the Presidential Palace in Jakarta on Friday, July 31, 2026, the Chair of the East Java Kadin asked about the excise stamp policy for Category III machine-rolled clove cigarettes (SKM).

Purbaya told Adik that the government was still studying the rate for Category III excise stamps. He also asked cigarette manufacturers to stop dealing in illegal cigarettes once the regulation takes effect. "If there are still illegal cigarettes, Customs will take action," Adik told Tempo on Sunday, September 6, 2026, quoting Purbaya.

It was not the first time East Java Kadin leadership had met with Purbaya to discuss the Category III excise rates. They first held talks in Surabaya in November 2025. Several cigarette manufacturers from Madura, East Java, as well as Customs Director-General Djaka Budhi Utama, attended the meeting.

At the time, Kadin officials presented a study titled Academic Paper on the Proposed New Category Three Excise Tax for SKM Cigarettes. The 94-page paper was prepared by Adik and several lecturers from Airlangga University and Trunojoyo University in Bangkalan, East Java. One of its recommendations was a Category III excise rate of Rp500 to Rp700 (around US$0.028-0.039) per cigarette.