Anastasya Lavenia Yudi, Jakarta – The Director General of Customs and Excise of the Indonesian Ministry of Finance, Djaka Budi Utama, stated that the Tobacco Excise Policy (CHT) has not effectively reduced cigarette production. He conveyed this during a meeting with the House of Representatives (DPR) Commission XI on Monday, November 24, 2025.
According to Djaka, cigarette production will remain high as long as the smoking culture in society remains strong. "So, even though anti-smoking groups are campaigning, as long as people still enjoy smoking, it will continue," Djaka said at the DPR complex.
The Ministry of Finance noted that cigarette production until the end of October 2025 only reached 258.4 billion sticks, a 2.8 percent decrease year on year compared to the previous year, which was 265.9 billion sticks. However, the production decline only occurred in group 1, from 138.7 billion sticks to 125.7 billion sticks.
Meanwhile, group 2 and group 3 production actually increased. Group 2 increased by 3.2 percent from 74.2 billion sticks in October 2024 to 76.5 billion sticks in October 2025. While group 3 increased by 6 percent from 53.1 billion sticks to 56.2 billion sticks.
Djaka believes that society currently disregards brands and tends to seek the cheapest cigarettes. He also stated that this hinders the eradication of illegal cigarettes. 'As I mentioned earlier, the important thing for society is that their mouths produce smoke, they do not pay attention to the brand, they also look for the cheapest price,' Djaka said.
Therefore, Djaka stated that this phenomenon needs to be anticipated by increasing the Tobacco Excise Revenue Sharing (DBHCT). He believes that DBHCT needs to be increased to support public health programs.
Finance Minister Purbaya Yudhi Sadewa has decided not to increase CHT in 2026. This is the second time cigarette excise has not increased after being implemented this year.
The decision was made by Purbaya after meeting with several cigarette producers who are members of the Union of Indonesian Cigarette Factory Association (Gappri). 'They (Gappri) said as long as it is not changed (not raised) it is enough. Well, I won't change it. Although I was thinking of reducing it (the tariff),' Purbaya said to reporters at the Ministry of Finance office in Jakarta, Friday, September 26, 2025.