The Indonesian government has raised the excise duty on tobacco products (CHT), also known as cigarette excise, by an average of 10% for two consecutive years, 2023 and 2024. As a result, this excise increase has driven up cigarette prices.
Finance Minister Sri Mulyani Indrawati stated that the excise tariff for Machine-Made Clove Cigarettes (SKM) Groups I and II will increase by an average of 11.5% to 11.75%, while Machine-Made White Cigarettes (SPM) Groups I and II will increase by 12% and 11%, respectively.
"Meanwhile, Hand-Rolled Clove Cigarettes (SKT) Groups I, II, and III will increase by 5%," said Finance Minister Sri Mulyani in a written statement from the Presidential Secretariat on Thursday (3/11).
The regulations for the minimum retail price (HJE) and excise tariff for cigarettes per stick or gram of domestically produced cigarettes for the following year are stipulated in Minister of Finance Regulation (PMK) Number 191 of 2022. These regulations were enacted on December 15, 2022, and came into effect on January 1, 2023.
The following are the regulations for the minimum HJE and excise tariff per stick or gram of domestically produced cigarettes effective from 2023:
Machine-Made Clove Cigarettes (SKM)
* Group I: Minimum HJE Rp 2,055 and excise tariff Rp 1,101
* Group II: Minimum HJE Rp 1,255 and excise tariff Rp 669
Machine-Made White Cigarettes (SPM)
* Group I: Minimum HJE Rp 2,165 and excise tariff Rp 1,193
* Group II: Minimum HJE Rp 1,295 and excise tariff Rp 710
Hand-Rolled Clove Cigarettes (SKT)
* Group I:
* HJE above Rp 1,800 with an excise tariff of Rp 461
* Minimum HJE Rp 1,250 - Rp 1,800 with an excise tariff of Rp 361
* Group II: Minimum HJE Rp 720 and excise tariff Rp 214
* Group III: Minimum HJE Rp 605 and excise tariff Rp 118
SKT Filter
* Minimum HJE Rp 2,055 and excise tariff Rp 1,101
Incense Clove Cigarettes (KLM)
* Group I: Minimum HJE Rp 860 and excise tariff Rp 461
* Group II: Minimum HJE Rp 200 and excise tariff Rp 25
Sliced Tobacco (TIS)
* HJE above Rp 275 with an excise tariff of Rp 30
* HJE above Rp 180 - Rp 275 with an excise tariff of Rp 25
* Minimum HJE Rp 55 - Rp 180 with an excise tariff of Rp 10
Clove and Leaf Cigarettes (KLB):
* Minimum HJE Rp 290 with an excise tariff of Rp 30
Cigars (CRT)
* HJE above Rp 198,000 with an excise tariff of Rp 110,000
* HJE above Rp 55,000 - Rp 198,000 with an excise tariff of Rp 22,000
* HJE above Rp 22,000 - Rp 55,000 with an excise tariff of Rp 11,000
* HJE above Rp 5,500 - Rp 22,000 with an excise tariff of Rp 1,320
* Minimum HJE Rp 495 - Rp 5,500 with an excise tariff of Rp 275