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Berita Hari Ini Tobacco Tax

  • Tobacco Industry Indonesia: Import Tariff to Be Raised in 2018

    Indonesia will not only raise excise duties on tobacco products per January 2018 but it was also announced that the import tariff on tobacco will be raised as well. Although the exact amount remains unknown, Indonesian Coordinating Minister for Economic Affairs Darmin Nasution confirmed the step would be taken in 2018.

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  • Hand-Rolled Clove Cigarette Industry of Indonesia in Trouble

    Production of hand-rolled clove cigarettes (kretek) fell 30 percent year-on-year (y/y) in 2016 due to stricter smoking regulations in Indonesia. Kretek is a clove cigarette that consists of tobacco (70 percent), and ground cloves, clove oil as well as other additives (30 percent). These clove cigarettes are the clear favorite of Indonesia's smoker community. It is estimated that 85 percent of all smokers in Indonesia prefer kretek cigarettes over white cigarettes. In total, around 55 million Indonesians consume tobacco-related products.

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  • Tantangan Terus Menerus untuk Produsen Rokok Indonesia

    Tahun 2015 adalah tahun yang sulit bagi industri rokok Indonesia karena terjadi kenaikan cukai sebesar 8,7% untuk produk-produk tembakau pada awal tahun 2015 dan melemahnya daya beli masyarakat akibat perlambatan ekonomi negara ini. Pada sembilan bulan pertama tahun 2015 penjualan rokok di Indonesia jatuh 1,3% pada basis year-on-year (y/y) menjadi 232 miliar rokok. Tahun depan, tantangan-tantangan akan tetap ada karena Pemerintah Indonesia mempersiapkan kenaikan pajak tembakau yang baru (23%). Kendati begitu, daya beli masyarakat diprediksi membaik karena pertumbuhan ekonomi mungkin berakselerasi.

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  • Tobacco Industry Indonesia Concerned about Looming Tax Hike

    In order to generate more tax revenue in 2016 the Indonesian government plans to raise tobacco taxes by 23 percent (as mentioned in the draft of the 2016 State Budget). This plan resulted in concern among Indonesia’s cigarette producers as the country’s purchasing power has already been curtailed amid the nation’s economic slowdown and high inflation. Contrary to the global trend, the Asian region recorded solid tobacco sales growth in recent years but now these countries seem to join in on anti-tobacco measures such as higher excise taxes and large pictorial warnings on packages.

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  • Smoking in Indonesia: Government’s Mixed Tobacco Control Policies

    The number of smokers in Indonesia continues to rise from year to year. Based on the latest data from Basic Health Research (Riset Kesehatan Dasar) a total of 58.8 million Indonesians aged over ten years smoked in 2013, more than ten times the population of neighbouring Singapore. In one year, these smokers lit around 225 billion cigarettes making Indonesia the third-largest tobacco consumer after China and India. More alarming, about four million of these Indonesian smokers are children between the age of 10 to 14 years.

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  • Indonesian Tobacco Products Subject to Excise Tax Hike in January 2015

    Starting from January 2015, Indonesian tobacco products are subject to an average tax rise of 8.7 percent. The excise tax on machine-rolled cigarettes becomes IDR 355 (USD $0.03) and on hand-rolled cigarettes IDR 290 (USD $0.02) per stick. The tax hike is implemented by the government in a move to increase state income through tax revenues. The higher excise tax is expected to have a minor effect on tobacco sales in Indonesia as retail prices for cigarettes remain among the lowest in the Southeast Asian region.

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  • Indonesian Tobacco Industry Expected to Continue its Growth in 2014

    After the Indonesian government abandoned the idea to increase excises on cigarettes, the production of cigarettes in Indonesia is expected to increase to between 355 and 360 billion cigarettes in 2014. However, in order to meet that target, it is also important that the country's macroeconomy - particularly the inflation rate - remains stable. This year, Indonesian cigarette production is expected to reach 340 billion cigarettes. Indonesia has one of the world's largest markets for cigarettes.

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