Inp.polri.go.id - Jakarta. House of Representatives (DPR) Commission XI has endorsed Minister Of Finance Purbaya Yudhi Sadewa’s decision not to raise tobacco excise duties in 2026, a rare pause in years of steady hikes.

“Minister Purbaya’s step to keep the 2026 tobacco excise unchanged is the right move and deserves support,” said Commission XI chairman Mukhamad Misbakhun in Jakarta on Saturday (27/9/2025). 

He urged the government to follow this with a comprehensive review of excise regulations, stressing the need to curb illegal trade, protect state revenue, and safeguard millions of workers reliant on the tobacco sector.

Minister Purbaya confirmed the policy after meeting industry associations on Friday, citing shrinking production and the surge in counterfeit cigarettes.

Indonesia, one of the world’s largest cigarette markets, has long debated balancing fiscal gains from tobacco taxes with the economic and social weight of the industry.

(mg/inp/pr/rs)