- Indonesia’s Minister of Finance, Sri Mulyani Indrawati, has stated that the President has demanded an average increase in the excise rates for tobacco products (Cukai Hasil Tembakau – "CHT") of 12% for 2022. Mrs. Mulyani also affirmed in her statement that this policy has already been decided and is currently being discussed with the Coordinating Minister for Economic Affairs and other relevant ministers.
- The CHT rates for 2022 will be divided into three types: 1) Category I machine-rolled kretek cigarettes (SKM) will see an increase of 13.9%, Category II will see an increase of 12.1% and Category IIB will see an increase of 14.3%; 2) Category I machine-rolled non-kretek cigarettes (SPM) will see an increase of 13.9%, Category IIA will see an increase of 12.4% and Category IIB will see an increase of 14.4%; and 3) Category IA hand-rolled kretek cigarettes (SKT) will see an increase of 3.5%, Category IB will see an increase of 4.5%, Category II will see an increase of 2.5% and Category III will see an increase of 4.5%.
- This new policy was decided through a consideration of various aspects, including public health, state revenue, manpower and the monitoring of illegal excisable goods. Based upon the 2020 - 2024 National Mid-Term Development Plan (Rencana Pembangunan Jangka Menengah Nasional/RPJMN), the prevalence of smoking within the 10 - 18 age range should fall by 8.7% by 2024. (ANT)
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