Cigarette Prices to Rise by 5–8 Pct in 2025 Under New Regulations
Jakarta. Cigarette prices will rise in 2025, even though the government is not increasing tobacco excise duties, under new rules set by Finance Minister Regulation (PMK) No. 97/2024 on tobacco excise.
“We hope that products that are harmful to health can be reduced. That is the main principle behind this price increase,” said Chief Economic Affairs Minister Airlangga Hartarto during a press briefing at his office on Friday.
The implementation of PMK 97/2024 is part of the government’s strategy to control tobacco consumption, protect the labor-intensive tobacco industry, and optimize state revenue.
According to the new regulation, the retail price of cigarettes cannot be set below the minimum price limits defined in the law. These limits are based on the category and type of cigarette, ensuring that prices reflect the excise tariff and the public health objectives.
This policy is also expected to help address the issue of illegal cigarettes, which cost the country an estimated Rp97 trillion annually.
Effective January 1, 2025, the following retail price per stick increases will apply to cigarettes:
-
Machine-made Clove Cigarettes (SKM), such as Gudang Garam International, Djarum Super, and Sampoerna A Mild:
- Class I: Minimum Rp 2,375 (up 5.08%)
- Class II: Minimum Rp 1,485 (up 7.6%)
-
Machine-made White Cigarettes (SPM), such as Marlboro, Lucky Strike, and Dunhill:
- Class I: Minimum Rp 2,495 (up 4.8%)
- Class II: Minimum Rp 1,565 (up 6.8%)
-
Hand-rolled Clove Cigarettes (SKT) or Hand-rolled White Cigarettes (SPT), such as Kotak Ajaib, Vigor Kretek, and Vigor Teh Manis:
- Class I: More than Rp 2,170 (up 9.5%)
- Class I Minimum: Rp 1,550–2,170 (up 9.5%–13%)
- Class II: Minimum Rp 995 (up 15%)
- Class III: Minimum Rp 860 (up 18.6%)
-
Hand-rolled Clove Filter Cigarettes (SKTF) or Hand-rolled White Filter Cigarettes (SPTF):
- No class: Minimum Rp 2,375 (up 5%)
Cigars will not experience a price increase.
Tags: Keywords:Related Articles
Indonesia’s 70 Million Smokers Persist Despite Tax Hikes
Indonesia still has 70 million smokers as cheap cigarettes blunt tax hikes, keeping smoking rates among the highest globally.The Latest
Dear Mr. President, Don’t Skip ASEAN Summits
Despite calls for Prabowo to stay home, the Indonesian leader still needs to attend ASEAN summits.PLN Rushes Coal Supplies After Power Outages Hit Java
PLN is rushing to secure coal supplies after shortages triggered rolling blackouts across Java, disrupting businesses and daily life.Japan-Backed ADB Invests in Indonesia’s Human Capital
As many as 399 Indonesian awardees have joined the ADB-Japan Scholarship Program from 1988 to 2024.Indonesian Stocks Rise Despite Foreign Outflows as MSCI Review Looms
Indonesia's JCI rose 2.8% as easing geopolitical tensions offset foreign outflows, MSCI concerns and rupiah pressures.World Cup 2026: Paraguay Holds Off Turkey With 10 Men to Keep Knockout Hopes Alive
Matias Galarza scored after 65 seconds as 10-man Paraguay beat Turkey 1-0, eliminating the Turks and securing first place for the US.Most Popular
