2026 Cigarette Tax Estimate Falls Four Point Three Four Percent

The Directorate General of Fiscal Balance, via Decision KEP‑58/PK/2025, estimates cigarette tax revenue for fiscal year 2026 at 21.98 trillion Rupiah. This figure represents the amount to be transferred from provincial governments to the central treasury. The estimate will serve as the basis for each province’s 2026 regional budget (APBD).

The 2026 estimate is 4.34 percent lower than the 2025 projection of 22.98 trillion Rupiah. Four provinces—West Java, East Java, Central Java and North Sumatra—are expected to collect more than one trillion Rupiah each. Governors must set the revenue‑sharing allocation to regencies and cities by November 2025.

Seventy percent of cigarette tax revenue must be shared with regencies and cities proportionally to their population. This share will constitute a key financing source for the 2026 regional budgets. The arrangement aims to sustain local fiscal capacity despite the overall decline in tax receipts.