DPR: Minister Of Finance's Decision Not To Increase Tobacco Product Excise Protects Millions Of Workers And Farmers

JAKARTA - Deputy Chairman of Commission XI DPR RI Hanif Dhakiri welcomed the decision of the Minister of Finance of the Republic of Indonesia, Purbaya Yudhi Sadive, which ensured that the excise tariff on tobacco products (CHT) would not increase in 2026 because it was considered capable of protecting millions of workers and small farmers in the industry.

"This policy is appropriate and should be appreciated. With no increase in tariffs, the government provides business certainty as well as taking sides with tobacco workers and farmers," said Hanif in his statement in Jakarta, quoted by Antara, Monday, September 29.

He said the decision also played an important role in maintaining employment in the tobacco sector, which is known as one of the largest employment absorbers in the country.

The tobacco products industry is not only a significant contributor to state revenue, but also a labor-intensive job supporter. Rating stability will help the industry survive while providing space for investment," said Hanif.

Furthermore, he emphasized the need for further steps so that the positive impact of this policy is more optimal.

"We encourage tightened supervision of illegal cigarettes, industrial estates are developed, and CHT Revenue Sharing Funds are optimized. That way, state revenues will be maintained, fiscal stable, and the interests of the community in the tobacco sector will be increasingly protected," he said.

Previously, the Minister of Finance of the Republic of Indonesia, Purbaya Yudhi Sadewa, ensured that the excise tariff on tobacco products would not increase in 2026. The decision was taken after hearing directly the aspirations of business actors from the tobacco industry.

Purbaya admitted that he had an audience with domestic big cigarette industry players. During the meeting, each party heard and provided input regarding the continuation of the cigarette industry, where Purbaya also asked about the excise tariff policy.

One thing that I discussed with them, do I need to change the excise rate in 2026? They said, as long as it wasn't changed, it was enough. Yes, I didn't change it," said Purbaya.

Despite canceling the cigarette excise rate, Purbaya stated that he had prepared other strategies to maintain state revenue as well as the sustainability of the cigarette industry.

One of the strategies is to expand the scope of the Tobacco Products Industrial Estate. This area provides supporting facilities that can be utilized by entrepreneurs of the tobacco products industrial area.

Purbaya plans to attract illegal cigarette makers into the special area, so that they can also become players in the system and pay taxes according to their obligations.

"So, we don't just defend big companies, but small ones can also enter the system," added Purbaya.