Speaking after a limited meeting with President Prabowo Subianto in Jakarta, Sadewa noted that he could not yet draw conclusions as the investigation remains ongoing.
"I will review it again. I have not conducted an in-depth analysis yet — what exactly is going on with cigarette excise? They say there is manipulation, but where exactly is this manipulation happening?" he said when asked about the proposal to cancel the planned 2026 cigarette excise hike.
He acknowledged the potential for boosting state revenue by improving the excise system, particularly by eradicating counterfeit excise.
"For example, if I can resolve this and eliminate counterfeit excise, how much revenue would that generate? From there, I can plan the next steps," he said.
Sadewa stressed that further policy decisions will depend on the results of ongoing studies and field analyses.
During a September 10 working meeting with Commission XI of the House of Representatives (DPR), the Ministry of Finance discussed ways to increase state revenue from tobacco excise in preparation for the 2026 State Budget (APBN).
At the meeting, Commission member Harris Turino raised concerns about the challenges faced by major cigarette manufacturers such as Gudang Garam and the impact on their workers.
He cautioned that an overly aggressive excise increase could strain the industry, particularly the machine-made clove cigarette (SKM) segment, and suggested that the government instead strengthen oversight of illegal cigarettes as an alternative means of increasing revenue without raising excise rates.
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Translator: Andi, Azis Kurmala
Editor: Anton Santoso
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