Sri Mulyani Increases Cigarette Prices Starting Today, Children And Women Still Want To Buy It?

Minister of Finance, Sri Mulyani Indrawati. (Photo: Ministry of Finance)

JAKARTA - Today, Monday 1 February, Minister of Finance Sri Mulyani officially raised the tobacco excise tariff (CHT) aka cigarette excise by 12.5 percent. Cigarette prices are confirmed to increase starting today.

Minister of Finance Sri Mulyani Indrawati previously said that the increase was aimed at reducing the number of smokers among children and women. Even so, it remains to be seen how the effectiveness of this policy will be.

The former Managing Director of the World Bank explained that the aspect to be considered in the cigarette excise policy next year is controlling consumption according to the National Medium Term Development Plan (RPJMN). Apart from that, he continued, there were problems with labor, tobacco farmers, illegal cigarettes, and state revenues.

"The government hopes to reduce the prevalence of smoking in children and women. The prevalence of smoking is recorded in general to drop from 33.8 percent to 33.2 percent in 2021," he explained on Thursday, December 10, 2020.

Meanwhile, said Sri Mulyani, for children 10-18 years old, efforts will be made to reduce them according to the RPJMN target. Meanwhile, the target is to reduce the prevalence level from 9.1 percent to 8.7 percent in 2024.

Sri Mulyani Indrawati said the increase in cigarette excise was to control the level of cigarette consumption in Indonesia. The Ministry of Finance adopted a policy to increase excise tax on tobacco products by 12.5 percent.

"The price of cigarettes is more expensive or the affordability index has increased from 12.2 percent to 13.7-14 percent. So that cigarettes are increasingly unbuyable," said Finance Minister Sri Mulyani.

The following is the composition of the increase in cigarette excise rates:

1.Machine Kretek Cigarettes (SKM)

- SKM Gol I: increased by Rp. 125 / rod or 16.9 percent to Rp. 865 / rod

- SKM Gol IIA: increased by IDR 65 / Batang or 13.8 percent to IDR 535 / Batang

- SKM Gol IIIB: increased by IDR 70 / Batang or 15.4 percent to IDR 525 / Batang

2.Machine White Cigarette (SPM)

- SPM Gol I: increased by IDR 145 / Batang or 18.4 percent to IDR 935 / Batang

- SPM Gol II A: increased by IDR 80 / rod or 16.5 percent to IDR 565 / rod

- SPM Gol IIIB: increased by IDR470 / Batang or 18.1 percent to IDR555 / Batang