Jakarta. A failure to increase tobacco excise tax could undermine efforts to eradicate tuberculosis (TB) by 2030, according to Diah Satyani Saminarsih, CEO of the Center for Indonesia’s Strategic Development Initiatives (CISDI).

The government has committed to eliminating TB by 2030, as outlined in Government Regulation No. 28/2024 on the Implementation of Law No. 17/2023 on Health and the National Long-Term Development Plan (RPJPN).

"If the tobacco excise tax doesn't increase, it will create a significant gap between the regulations and the actual implementation of policies," she said.

The WHO Global Tuberculosis Report 2023 estimates that Indonesia has 1,060,000 TB cases, equivalent to 385 cases per 100,000 people, making it the second-highest burden globally, after India and followed by China.

Diah explained that while raising the tobacco tax may make cigarettes more expensive, people often switch to cheaper brands. "This doesn't solve the problem," she added.

By Aug. 31, 2024, tobacco excise revenues reached Rp 132.8 trillion, a 4.7 percent increase from the same period last year, due to a 10 percent hike in excise tax and higher production.

Diah emphasized the importance of regulating untaxed cigarettes to prevent unregulated sales and ensure compliance with regulations. She added that higher tobacco taxes would provide the government with more fiscal resources for public health initiatives, such as nutritious food programs, free health screenings, and TB treatment.

A CISDI study found that the government spends Rp 27.7 trillion annually on treating tobacco-related diseases, including cardiovascular disease, cancer, diabetes, and kidney failure.

Diah also highlighted that 8.8 million Indonesians live below the poverty line, but this is often masked by household spending on cigarettes, which inflates the appearance of their financial situation. "Without tobacco expenditures, many more families would be classified as living in poverty," she concluded.