Arnoldus Kristianus, Jakarta – Cigarette prices will rise in 2025, even though the government is not increasing tobacco excise duties, under new rules set by Finance Minister Regulation (PMK) No. 97/2024 on tobacco excise.

"We hope that products that are harmful to health can be reduced. That is the main principle behind this price increase," said Chief Economic Affairs Minister Airlangga Hartarto during a press briefing at his office on Friday.

The implementation of PMK 97/2024 is part of the government's strategy to control tobacco consumption, protect the labor-intensive tobacco industry, and optimize state revenue.

According to the new regulation, the retail price of cigarettes cannot be set below the minimum price limits defined in the law. These limits are based on the category and type of cigarette, ensuring that prices reflect the excise tariff and the public health objectives.

This policy is also expected to help address the issue of illegal cigarettes, which cost the country an estimated Rp97 trillion annually.

Effective January 1, 2025, the following retail price per stick increases will apply to cigarettes:

Machine-made Clove Cigarettes (SKM), such as Gudang Garam International, Djarum Super, and Sampoerna A Mild:Class I: Minimum Rp 2,375 (up 5.08%)Class II: Minimum Rp 1,485 (up 7.6%)

Machine-made White Cigarettes (SPM), such as Marlboro, Lucky Strike, and Dunhill:Class I: Minimum Rp 2,495 (up 4.8%)Class II: Minimum Rp 1,565 (up 6.8%)

Hand-rolled Clove Cigarettes (SKT) or Hand-rolled White Cigarettes (SPT), such as Kotak Ajaib, Vigor Kretek, and Vigor Teh Manis:Class I: More than Rp 2,170 (up 9.5%)Class I Minimum: Rp 1,550-2,170 (up 9.5%-13%)Class II: Minimum Rp 995 (up 15%)Class III: Minimum Rp 860 (up 18.6%)

Hand-rolled Clove Filter Cigarettes (SKTF) or Hand-rolled White Filter Cigarettes (SPTF):No class: Minimum Rp 2,375 (up 5%)

Cigars will not experience a price increase.

Source: https://jakartaglobe.id/news/cigarette-prices-to-rise-by-58-pct-in-2025-under-new-regulation