Indonesia’s government confirmed it will not raise tobacco excise rates in 2026, opting instead to restructure the cigarette excise system by adding new tax tiers. Finance Minister Purbaya Yudhi Sadewa said the move is intended to bring machine-rolled clove cigarettes (SKM) that have effectively operated outside the current tax structure into the excise system. The government expects the changes to be implemented this year, arguing that revising the tax structure is more appropriate than raising excise rates amid weakening consumer purchasing power and a shift toward lower-priced cigarettes.
