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Tag: Indonesia

  • 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.

  • Vapes Increasingly Exploited by Drug Dealers in Indonesia

    Vapes Increasingly Exploited by Drug Dealers in Indonesia

    Police in Jakarta have arrested suspected distributors of etomidate, a substance increasingly linked to illicit vape products, during operations in West Jakarta and Tangerang City. Authorities detained a 37-year-old woman, where officers seized 45 packages of etomidate, which is classified as a Schedule II narcotic under Indonesia’s 2025 reclassification rules. Officials say the arrests reflect growing concern over the circulation of etomidate in e-cigarettes across Jakarta and surrounding areas, with investigations ongoing into distribution networks operating in residential locations.

  • Indonesia’s First Prosecution for Discarded Cigarette Butt

    Indonesia’s First Prosecution for Discarded Cigarette Butt

    An Indonesian man was sentenced to six hours of community service and fined RM300 ($0.02) by the Sessions Court in Alor Star yesterday (January 26), after pleading guilty to discarding a cigarette butt in a public area, marking the first prosecution in Kedah under amended littering provisions of Malaysia’s Solid Waste and Public Cleansing Management Act 2007. The defendant, 39-year-old construction worker, admitted to the offence committed near Alor Star Tower shortly after midnight on January 1, where he was found disposing of the cigarette butt outside a designated bin. The amended law introduces mandatory community service for littering offences, allowing fines of up to RM2,000 ($0.12) and up to 12 hours of community service.

  • Indonesia Looking to Tighten Tobacco Control

    Indonesia Looking to Tighten Tobacco Control

    Indonesian Health Minister Budi Gunadi Sadikin outlined plans to strengthen national tobacco control through legislative reform, citing proposed revisions to expand graphic health warnings, tighten advertising restrictions, ban the sale of loose cigarettes, and regulate e-cigarettes. Speaking virtually at the 8th Asia-Pacific Cities Alliance for Health and Development (APCAT) Summit in Jakarta today (January 26), Sadikin said the measures are aimed at reducing both tobacco supply and demand through coordinated partnerships.

    Sadikin said that tobacco is Indonesia’s third-largest risk factor for death, with around 70 million adult smokers and 9.1% of children having tried smoking. The government also plans to expand smoke-free areas and increase access to smoking cessation services at community health centers, while health officials emphasized cross-sector and community-based efforts to address tobacco use and related non-communicable diseases.

  • Indonesian Cig Tax Plan Comes with Risk: Economist

    Indonesian Cig Tax Plan Comes with Risk: Economist

    Indonesian Finance Minister Purbaya Yudhi Sadewa is exploring the introduction of an additional excise tier for cigarettes, a move intended to provide a legal pathway for certain illegal tobacco products. While economists see potential fiscal benefits, including expanded tax revenue and improved enforcement legitimacy, experts caution that outcomes are not guaranteed. Imanina Eka Dalilah, a senior researcher at Universitas Brawijaya, said that if the new tier simply shifts consumption from higher-taxed legal products to lower-tax brackets, it could cannibalize revenue rather than expand the tax base. She added that law-abiding manufacturers could face new competition from previously illegal producers, creating a moral hazard if past compliance is effectively penalized by regulatory changes. According to Dalilah, the success of the policy hinges on careful design: it should be transitional, tightly regulated, and include safeguards to prevent consumption shifts and revenue erosion, ensuring that compliance is rewarded and illegal actors remain deterred. Without such measures, the excise tier risks becoming a short-term fix that could destabilize the legal tobacco market.

  • IKT Announces New Distribution Structures for Asian Expansion

    IKT Announces New Distribution Structures for Asian Expansion

    International Korea Tobacco (IKT) announced that it has launched aggressive expansion domestically as well as within Indonesia. In both markets, the company has established distribution structures through partnerships with state-owned enterprises, reflecting a high-barrier but strategically positioned market entry. IKT said it contributes more than 20 years of tobacco R&D and manufacturing experience with an annual capacity of 250 million packs.

    In Indonesia, IKT has partnered with the local distributor Mir Six Global to launch the machine-made white cigarette (SPM) products Pointful Blue and Pointful Flow, initiating distribution through approximately 100 Bright Store outlets, the convenience store chain owned by Pertamina Retail, while simultaneously pursuing an expansion into nationwide minimarket chains. This collaboration is regarded as a tobacco distribution partnership aimed at positioning Indonesia as a strategic logistics hub within Southeast Asia, leveraging a Java-centered distribution structure to enhance logistics efficiency and scalability.

    Domestically, IKT signed a distribution agreement with the Korea Supermarket Cooperative Federation, an affiliate of the Korea Federation of SMEs, to supply Pointful Korea cigarettes across South Korea’s small supermarket and convenience store network. The rollout will distribute the brand to more than 50,000 retail outlets nationwide, aiming to revitalize local retail channels and create new profit opportunities for small businesses.

  • Indonesia Considers Special Tax for Illegal Cigarettes

    Indonesia Considers Special Tax for Illegal Cigarettes

    Indonesia’s government proposed introducing a special excise tariff for illegal cigarettes as a way to curb illicit trade and boost state revenue, but the plan has sparked concern among industry players over potential market distortions and policy uncertainty. Finance Minister Purbaya Yudhi Sadewa said details are still being finalized, explaining the measure would mainly target small-scale local cigarette producers, while foreign illicit products would continue to face strict enforcement. He estimated that formalizing illegal production could generate trillions of rupiah in additional revenue, though discussions on fiscal impacts are ongoing and will require approval from the House of Representatives, a process that could take time, according to The Jakarta Post.

  • Indonesia Busts Lab Filling Vapes with Narcotics

    Indonesia Busts Lab Filling Vapes with Narcotics

    Indonesia’s National Narcotics Agency (BNN) detained two Malaysian men suspected of producing e-cigarette liquids containing etomidate, an intravenous anesthetic drug, at an apartment in South Jakarta. The arrests were made after investigators identified the location as an illegal laboratory used to process the drug for use in vape products.

    BNN Director General of Enforcement Aldrin Hutabarat said intelligence showed one suspect entered Jakarta carrying around 3,000 empty vape cartridges before heading to the apartment. During the raid, authorities found the two men actively mixing etomidate liquid for filling into cartridges and seized the drug, vape components, cash, and mobile phones. One suspect reportedly admitted being paid Rp 6.4 million ($377) to travel to Indonesia.