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Jakarta Post

Cigarette prices to jump 35 percent as government hikes excise

  • Marchio Irfan Gorbiano and Riska Rahman

    The Jakarta Post

PREMIUM
Jakarta   /   Sat, September 14, 2019   /  05:12 pm
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A tobacco seller in Parakan smokes a kretek cigarette in his warehouse. (JP/Dottie Bond)

The government has decided to increase the tobacco excise next year in a move aimed at, among other targets, reducing the smoking prevalence in the country. “We decided to increase the cigarette excise by 23 percent on average, while the retail price will be hiked by 35 percent. This will be regulated in a Finance Ministry regulation,” said Finance Minister Sri Mulyani Indrawati at the State Palace on Friday. She added that President Joko “Jokowi’ Widodo and Vice President Jusuf Kalla had given their blessings to the decision, which was also taken in consultation with the Office of the Coordinating Economic Minister, the Manpower Ministry, the Industry Ministry and the Agriculture Ministry. The move marked the government’s reversal of its decision to leave the cigarette excise unchanged in 2019 — the first time since Jokowi assumed office in 2...