Indonesia Reviews Cigarette Excise Amid Forgery Allegations

According to Tobacco Reporter, Indonesia’s government is conducting an in-depth review of its cigarette excise system following allegations of forgery and manipulation, Finance Minister Purbaya Yudhi Sadewa said after a meeting with President Prabowo Subianto. Sadewa noted that he has yet to reach any conclusions, stressing that policy decisions, including whether to proceed with the planned 2026 excise hike, will depend on the results of ongoing studies and field investigations.

‘I will review it again,’ Sadewa was quoted in an article from the Indonesian News Agency when asked about the proposal to cancel the planned excise hike. ‘I have not conducted an in-depth analysis yet – what exactly is going on with cigarette excise? They say there is manipulation, but where exactly is this manipulation happening?’ 

The minister highlighted the potential revenue gains from eliminating counterfeit excise stamps, saying such reforms could strengthen state finances without placing additional pressure on consumers. ‘If I can resolve this and eliminate counterfeit excise, how much revenue would that generate? From there, I can plan the next steps,’ he told reporters.