The Indonesian government has deferred tobacco excise tax hikes until 2027 while planning to add new tax tiers with lower rates.
Smoking-related economic and health losses in Indonesia are estimated to reach between Rp184 trillion and Rp410 trillion.
International models like the Philippines and Finland show that high, consistent excise taxes effectively reduce smoking rates and fund healthcare.
Experts recommend a 25% annual excise increase to prevent millions of deaths and generate significant additional state revenue.