OVERVIEW

With the start of 2015 the government announced its plan to amend the 2015 State Budget. One objective of is to increase revenue from customs and excise to IDR 178.2 trillion, of which IDR 141.7 trillion is expected to be derived from the tobacco industry. The target of increasing tobacco excise by 27 percent is likely to result in the tobacco industry producing more tobacco products and expanding their markets.[1]

At present, tobacco consumption in Indonesia is already at a critical level, with approximately 52 million active smokers, consuming 260 million cigarettes each year, with these figures expected to increase. Based on these numbers, Indonesia was ranked as the fourth highest smoking country in 2014, behind the big three of China, Russia, and the United States.[2]