TobaccoReporter logo

Tag: Indonesia

  • Indonesia Stepping Up Vape Surveillance

    Indonesia Stepping Up Vape Surveillance

    Indonesia’s National Food and Drug Monitoring Agency (BPOM) is set to gain oversight of vape distribution nationwide, working alongside the National Narcotics Agency (BNN) following reports of drug-laced e-liquids in the market. BPOM said it will develop technical regulations under the country’s recent health laws to determine which vape products are permitted and which will face sanctions, with decisions guided by scientific assessment.

    While BNN has proposed a total ban on e-cigarettes to combat narcotics risks, BPOM signaled a more targeted approach, focusing on stricter control of illegal products lacking excise stamps rather than blanket prohibition. Authorities noted that illicit vapes are the primary source of drug contamination.

  • Indonesian Groups Reject Tobacco Tier Tax Proposal

    Indonesian Groups Reject Tobacco Tier Tax Proposal

    A coalition of Indonesian civil society groups rejected a government proposal to expand the country’s tobacco excise system by adding a new tariff tier, arguing it could undermine public health objectives and increase corruption risks. The Coalition Save Our Surroundings (SOS), which includes CISDI, Seknas FITRA, and Indonesia Corruption Watch, said the plan contradicts the primary purpose of excise policy of controlling consumption, and instead prioritizes revenue generation. Officials proposed adding a ninth tier to the existing structure to encourage illegal producers to enter the formal market, with potential implementation as early as May 2026.

    Critics argue the move could complicate the system and enable “downtrading,” where consumers shift to cheaper products, while also creating opportunities for manipulation and weak enforcement. CISDI recommended simplifying the current structure rather than expanding it, and ICW warned that additional tiers could open new avenues for corruption through product misclassification. Government officials maintain the policy could help increase revenue and curb illicit trade, but civil society groups say it does not address underlying enforcement challenges.

  • Indonesia Seizes 11M Illegal Cigarettes at Border Op

    Indonesia Seizes 11M Illegal Cigarettes at Border Op

    Authorities in Indonesia dismantled a large-scale illegal cigarette trafficking operation in East Nusa Tenggara, seizing approximately 11 million illicit cigarettes with counterfeit excise stamps. The case, uncovered through a joint operation involving police, customs, and immigration officials, highlights ongoing smuggling activity along the Timor Leste border, with estimated state losses exceeding IDR 12 billion ($696,000).

    Investigators said the network smuggled cigarettes by sea into the Atapupu area before distributing them across Timor Island, using multiple storage locations to support the operation. Four foreign suspects were arrested in connection with the case, which officials described as part of a structured, transnational network exploiting border vulnerabilities for large-scale illicit trade.

  • Indonesia’s Tax Strategy Not Impacting Smoking Rates

    Indonesia’s Tax Strategy Not Impacting Smoking Rates

    Indonesia’s long-running reliance on tobacco excise increases has failed to significantly curb smoking, according to a National Health Survey, with around 70 million people still using tobacco and prevalence remaining among the highest globally. Despite a 23% tax increase in 2020 and steady annual rises since, cigarette affordability has remained largely unchanged, as income growth has offset price increases, leaving consumers spending roughly the same share of income on cigarettes over the past decade.

    Analysts say structural issues are undermining the effectiveness of tax policy, particularly wide price disparities across product categories. Lower-taxed hand-rolled kretek cigarettes continue to provide a cheaper alternative, encouraging smokers to downtrade rather than quit. This dynamic has limited the impact of higher taxes on overall consumption.

    Health economists argue that without more aggressive and harmonized tax reforms, excise policy alone will continue to fall short as a deterrent. The findings underscore broader challenges for tobacco control strategies in emerging markets, where affordability and product substitution can blunt the intended impact of fiscal measures.

  • Indonesia to Enforce New Vape Rules from July

    Indonesia to Enforce New Vape Rules from July

    Indonesia is set to implement new e-cigarette regulations from July under Government Regulation No. 28/2024, aligning controls more closely with those for conventional cigarettes. The rules will introduce a minimum age of 21, restrict advertising (including social media), set limits on nicotine content, mandate pictorial health warnings, and create smoke-free areas. The move is part of broader efforts to strengthen public health protections, with officials also preparing additional guidelines and highlighting the need to address youth access and marketing practices.

  • Indonesia Proposes Vape Ban Over Narcotics Concerns

    Indonesia Proposes Vape Ban Over Narcotics Concerns

    Indonesia’s National Narcotics Agency (BNN) proposed a nationwide ban on electronic cigarettes and vape liquids as part of revisions to the country’s narcotics and psychotropic substances bill, citing evidence that vaping devices are being used to distribute illicit drugs. BNN chief Suyudi Ario Seto told lawmakers that lab tests on 341 vape liquid samples found synthetic cannabinoids in 11 samples, methamphetamine in one, and etomidate in 23. He said existing health regulations carry lighter penalties, limiting enforcement effectiveness.

    Seto noted that several ASEAN countries — including Singapore and Thailand — already prohibit vapes, arguing that banning the devices in Indonesia would help curb the spread of new psychoactive substances, 175 of which are already present in the country.

  • Michael Hartono, Co-Owner of Djarum, Dies at 86

    Michael Hartono, Co-Owner of Djarum, Dies at 86

    Michael Bambang Hartono, Indonesia’s richest man and co-owner of the Djarum Group, passed away today (March 19) at the age of 86 in Singapore. Alongside his brother Robert Budi Hartono, he transformed the family’s inherited cigarette business into one of the country’s largest conglomerates, with interests spanning tobacco, banking, technology, property, sports, and e-commerce. Their flagship company, PT Djarum, produces a range of kretek cigarettes, which remain widely popular in Indonesia. The brothers introduced machine-made kretek products such as Djarum Filter in 1976 and Djarum Super in 1981, expanding exports to international markets including the United States. Today, around 60,000 workers manually roll Djarum cigarettes, which are marketed domestically and abroad as filtered cigars wrapped in tobacco leaf to comply with U.S. flavor bans.

    Beyond tobacco, the Hartonos are major shareholders in Bank Central Asia, Indonesia’s largest bank, and redeveloped Hotel Indonesia into the Grand Indonesia complex, encompassing shopping, offices, and a luxury hotel, and are known for philanthropy. With a personal net worth of $25.1 billion in 2024 and a combined family fortune exceeding $43.8 billion, Hartono is survived by his brother, wife, and son.

  • Indonesian Cigarette Importers Under Investigation for Bribery

    Indonesian Cigarette Importers Under Investigation for Bribery

    Indonesia’s Corruption Eradication Commission (KPK) is investigating alleged manipulation of cigarette excise payments at the Directorate General of Customs and Excise (DJBC), saying it has secured preliminary evidence on companies suspected of involvement in illegal cigarette imports. On Feb. 27, the KPK detained and named Budiman Bayu Prasojo, head of the Intelligence Section for Excise Enforcement and Investigation at the DJBC, as a suspect in a corruption probe linked to import clearance and excise arrangements.

    KPK deputy for enforcement and execution Asep Guntur Rahayu said investigators suspect certain cigarette importers provided bribes or gratuities to customs officials in connection with excise regulation. The agency previously seized Rp 5.19 billion ($300,000) in cash from a safe house believed to be linked to the suspects, money thought to be proceeds of alleged bribery. Investigators are tracing the companies and individuals involved and said further details will be disclosed once the probe is complete.

  • Indonesian Retailers Ban Vape Sales to Under-21s

    Indonesian Retailers Ban Vape Sales to Under-21s

    The Indonesian Vape Retailers Association (Arvindo) instructed all member stores to stop selling e-cigarettes to customers under 21, requiring retailers to display 21+ signage, and verify age with valid identification. Chairman Fachmi Kurnia said the move supports government efforts to curb youth access, a position echoed by the Tar and Smoke Free Movement, which maintains that alternative tobacco products should be reserved for adult smokers. Arvindo also urged policymakers to adopt science-based regulation and consider vaping’s harm-reduction potential, citing a 2025 JAMA Network study showing e-cigarettes were the most commonly used quit aid in England. The call comes as Indonesia faces persistently high smoking rates, with government data estimating 70 million active smokers, including significant youth prevalence.

  • Indonesian Health Groups Push to Regulate Vape Packaging

    Indonesian Health Groups Push to Regulate Vape Packaging

    Indonesian health groups are pressing the Ministry of Health to immediately mandate pictorial health warnings and standardized packaging for e-cigarettes, citing rising youth use and regulatory gaps. The Indonesian Health Policy Room, TCSC–IAKMI, and CISDI warned that colorful vape packaging and weak oversight increase the risk of nicotine addiction and exposure to illicit substances among adolescents, and called for stronger enforcement and a ban on e-cigarette advertising on social media.

    Citing national data showing high smoking rates among teens, the groups urged swift regulatory action to curb youth uptake and close oversight gaps.