Since 2018, local governments have been obligated to contribute a portion of their cigarette tax revenue to support the National Health Insurance Agency (BPJS Kesehatan) program.
This obligation is stipulated in Article 2 of the Minister of Finance Regulation (PMK) Number 128/PMK.07/2018, which reads:
(1) Local Governments are obligated to support the implementation of the Health Insurance program.
(2) Support for the implementation of the Health Insurance program as referred to in paragraph (1) is carried out through contributions from revenue sourced from the cigarette tax share of each provincial/regency/municipal government.
(3) The cigarette tax contribution as referred to in paragraph (2) is set at 75% (seventy-five percent) of 50% (fifty percent), or the equivalent of 37.5% (thirty-seven point five percent) of the realized revenue sourced from the cigarette tax of each province/regency/municipality.
Supported by this regulation, throughout 2022, BPJS Kesehatan received Social Security Fund (Dana Jaminan Sosial/DJS) revenue from cigarette tax contributions amounting to Rp269.7 billion. However, this acquisition decreased by 75% compared to 2021 (year-on-year/yoy).
In 2022, cigarette taxes also only contributed approximately 0.2% to the total DJS revenue of BPJS Kesehatan, which amounted to Rp148.1 trillion.
In 2019, BPJS Kesehatan did not receive any recorded funds from cigarette tax contributions, as shown in the graph above.