"So far, I have not thought about it," Sadewa said in Jakarta on Monday.
He explained that keeping the excise rate unchanged while increasing cigarette prices would widen the gap in efforts to curb illegal cigarette circulation. If the price of legal cigarettes rises, more consumers may turn to illegal products.
"The price gap will widen further, which could encourage the spread of illegal goods," he added.
The minister also said that raising excise taxes would contradict his earlier decision to cancel the planned tax hike for next year.
Purbaya announced the cancellation of the 2026 cigarette excise tax increase during a media briefing at the Ministry of Finance office in Jakarta on September 26.
"In 2026, we will not raise the excise tax rate," he stated.
Sadewa said he had met with major domestic cigarette industry players to exchange views and gather input regarding the future of the tobacco sector, including opinions on excise policy.
"I asked them whether I should adjust the excise rate in 2026. They said that as long as it remains unchanged, it would be good enough. So, I decided not to change it," he said.
The minister stated that alternative strategies are being prepared to maintain state revenue while ensuring the sustainability of the tobacco industry.
He added that the government aims to design policies that promote fair business competition without reducing employment opportunities.
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Translator: Imamatul Silfia, Asri Mayang Sari
Editor: Primayanti
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