Cigarette prices will rise 5-8% in 2025 under new regulations

Jakarta. Cigarette prices will increase in 2025, even if the government does not increase excise taxes on tobacco, under the new rules set by Regulation of the Minister of Finance (PMK) No. 97/2024 on excise taxes on tobacco. tobacco.

“We hope that products harmful to health can be reduced. This is the main principle behind this price increase,” Chief Minister of Economic Affairs Airlangga Hartarto said at a press briefing in 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 maximize state revenue.

According to the new regulations, the retail price of cigarettes cannot be set below the minimum price limits defined by law. These limits are based on the category and type of cigarettes, ensuring that prices reflect excise duty and public health objectives.

The policy is also expected to help solve the problem of illegal cigarettes, which cost the country around 97 trillion rupees annually.

Effective January 1, 2025, the following retail price increases per stick will apply to cigarettes:

Machine Made Clove Cigarettes (SKM)like 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%)

White Machine Made Cigarettes (SPM)like 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)like Kotak Ajaib, Vigor Kretek and Vigor Teh Manis:
- Class I: More than Rp 2,170 (up 9.5%)
- Class I minimum: Rp 1,550 to 2,170 (up from 9.5% to 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 classes: minimum Rp 2,375 (up 5%)

Cigars will not see a price increase.

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