Cigarette Prices Increase Starting January 1, 2025, Here is the Price List

Kapanlagi.com - The Indonesian government has announced quite surprising news for smokers and the tobacco industry. Starting January 1, 2025, cigarette prices will increase! This decision is stated in the Minister of Finance Regulation Number 97 of 2024, signed by Finance Minister Sri Mulyani on December 4, 2024.

Although the excise tax rates on tobacco (CHT) remain unchanged, the retail selling price (HJE) for various types of cigarettes will rise by varying percentages, depending on the type and category of the cigarettes. This step is taken as an effort to control tobacco consumption in the country while also protecting the tobacco industry that employs a large workforce.

Moreover, this policy also aims to increase state revenue from the tobacco excise sector, even though the excise tax rates themselves will not change next year. The government has set the retail selling prices of cigarettes for various categories, ranging from machine-made clove cigarettes to cigars.

For the public and the tobacco industry, it is now time to prepare for these changes. It is important for consumers to understand the latest cigarette prices to anticipate changes in costs. For more information regarding the details of the retail selling prices of cigarettes that will take effect, stay tuned for further news as compiled by Kapanlagi.com from various sources, Monday (16/12).

1. Increase in Prices of Machine-Crafted Clove Cigarettes (SKM) and Machine-Crafted White Cigarettes (SPM)

The prices of machine-crafted clove cigarettes (SKM) and machine-crafted white cigarettes (SPM) have experienced a significant spike. For group I, SKM is now priced at Rp2,375 per stick, marking an increase of 5.08 percent compared to 2024, while group II SKM has surged to Rp1,485 per stick with a rise of 7.6 percent and an excise tax of Rp746 per stick.

On the other hand, group I SPM is also not lagging behind, rising 4.8 percent to Rp2,495 per stick, and group II SPM is now priced at Rp1,565 per stick, an increase of 6.8 percent with an excise tax of Rp794 per stick.

This price increase indicates that machine-made cigarettes, both clove and white, will have more varied pricing between group I and II. With this change, consumers will feel the impact in the market, where some types of cigarettes may become harder to reach.

The government hopes this measure can curb tobacco consumption and assist in controlling smoking in society.

"The Minister of Finance Regulation (PMK) has been prepared together with BKF. It has been harmonized at the Ministry of Law and Human Rights and, God willing, it can be implemented this week," said the Director General of Customs and Excise, Askolani, as reported by ANTARA.

2. Increase in Prices of Hand-Rolled Clove Cigarettes (SKT) and Hand-Rolled White Cigarettes (SPT)

Starting January 1, 2025, the retail price of hand-rolled clove cigarettes (SKT) and hand-rolled white cigarettes (SPT) will experience a significant spike. For Group I, the price of SKT will surge to between Rp1,555 and Rp2,170 per stick, marking an increase of about 9.5 percent.

Group II and III are also not exempt from changes, with the price of Group II SKT rising to Rp995 per stick (an increase of 15 percent) and Group III reaching Rp860 per stick (an increase of up to 18.6 percent).

Almost all types of SKT and SPT, both filtered and unfiltered, will also feel the impact, forcing consumers to prepare for higher cigarette costs.

This price increase is expected to help control tobacco consumption in society and reduce the number of active smokers in Indonesia. Tobacco industry players are also required to adapt to this new pricing policy.

3. Handmade Filter Clove Cigarettes (SKTF) and Handmade Filter White Cigarettes (SPTF)

Starting January 1, 2025, cigarette lovers in Indonesia must prepare for a price increase for handmade filter clove cigarettes (SKTF) and handmade filter white cigarettes (SPTF).

The lowest retail selling price for these types of cigarettes will soar to Rp2,375 per stick, an increase of about 5 percent compared to last year. This price increase applies to all variants of SKTF and SPTF available in the market, as a government measure to control tobacco consumption in the country.

Although the increase is not as significant as for other cigarettes, the impact is still felt by consumers and the industry, considering the widespread popularity of handmade filter cigarettes.

With this price adjustment, consumers may feel a long-term impact on their purchasing power, while the cigarette industry is required to formulate new strategies to remain competitive amidst the changes.

This will certainly affect consumer choices in selecting the type of cigarettes they consume.

4. Price of Other Types of Cigarettes: Kemenyan Leaf (KLM), Sliced Tobacco (TIS), and Leaf Cigarettes or Klobot (KLB)

In 2025, the prices of various types of traditional cigarettes such as kemenyan leaf (KLM), sliced tobacco (TIS), and leaf cigarettes or klobot (KLB) remain stable without significant changes.

For KLM Class I, consumers can still purchase this cigarette at a price of Rp950 per stick, while Class II KLM continues to be sold at an affordable price of Rp200 per stick.

Similarly, sliced tobacco prices range from Rp55 to Rp180 per stick, and leaf cigarettes or klobot are still priced starting from Rp290 per stick.

Cigar prices have also not changed, with a price range from Rp495 to Rp5,500 per stick, depending on the type and class.

This consistent pricing policy reflects the government's efforts to maintain the accessibility of local tobacco products amid broader cigarette consumption control policies.

5. The Impact of Cigarette Price Increases on Industry and Consumers

The recent increase in cigarette prices is predicted to shake the tobacco industry and affect the consumption habits of the public.

For smokers, this price surge might force them to dig deeper into their pockets, switch to other types of cigarettes, or even try to reduce their smoking habits.

This move aligns with the government's efforts to reduce the number of active smokers in the country. On the other hand, the tobacco industry must prepare to face new challenges; they may need to overhaul their marketing and pricing strategies to remain competitive amid this market turbulence.

Although the excise tax rates remain the same, the changes in retail selling prices still disrupt the existing dynamics. The government is optimistic that this policy will create a balance between controlling tobacco consumption and ensuring the sustainability of the industry, while also boosting revenue from the excise sector.

6. When will cigarette prices increase?

Starting January 1, 2025, smokers should prepare to dig deeper into their pockets, as the government has decided to raise cigarette prices.

7. Will the increase in cigarette prices be accompanied by an increase in excise rates?

Don't worry, the excise rates remain stable! The only change is in the retail selling price, which is now experiencing an increase.

8. What is the purpose of this increase in cigarette prices?

The increase in tobacco prices is strategically aimed at reducing consumption, protecting the tobacco industry, and maximizing state revenue.

(kpl/rmt)