On Cigarette Excise, Purbaya Prioritizes Economic Interests?

Bisnis | Ekonomi - Posted on 02 October 2025 Reading time 5 minutes

Purbaya Santai Hadapi Protes Cukai Rokok, Kritik Mengalir Deras

Finance Minister Purbaya Yudhi Sadewa responded to criticisms regarding his decision not to raise cigarette excise rates in 2026.

 

Some critics argued that Purbaya is prioritizing economic growth over public health.

 

“If addressing health could create as many jobs as would be lost due to industry shutdowns, then the policy could be changed immediately,” he said, cited Wednesday (October 1).

 

Purbaya emphasized that the government continues to encourage public education to reduce cigarette consumption, but this approach must be carried out gradually.

 

He stated that balancing public health, economic stability, and job sustainability should serve as the primary foundation for any excise policy decision.

 

Purbaya also acknowledged that any policy will inevitably generate both support and opposition, but the government remains focused on steps considered most beneficial for the economy and society.

 

“Let it be, some people like it, some don’t. Every policy naturally has pros and cons,” Purbaya explained.

 

He added that the decision not to increase cigarette excise was taken to ensure the tobacco industry remains viable and to prevent illegal products from dominating the market.

 

Beyond health considerations, Purbaya stressed that fiscal policy must also account for the sustainability of jobs supported by the tobacco industry.

“The reasoning is clear. I do not want the tobacco industry to collapse,” he said.

 

However, his decision has drawn criticism from several parties, who argue that the government is not firm enough on the tobacco industry and is weakening efforts to control cigarette consumption in Indonesia.

Source: jpnn.com

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