Excise Policy and Health Implications

Oct 13, 2025 by talynt.org 91 views

Introduction

The Indonesian government has implemented various policies to control the consumption of tobacco products, one of which is the excise tariff policy. The regulation of the Minister of Finance of the Republic of Indonesia Number 191/PMK.010/2022 concerning Tobacco Product Excise Tariffs in the form of Cigarettes, Cigarts, Leaf Cigarettes or Klobot, and Tobacco Iris has been implemented to reduce cigarette consumption in the community for public health. However, the excessive excise tariff increase policy based on the purpose of public protection actually collides with the competitive sector in the tobacco product industry. This article will discuss a juridical review of the excise tariff policy in the Minister of Finance Regulation of the Republic of Indonesia Number 191/PMK.010/2022, as well as its implications for business competition law.

The tobacco industry is one of the largest markets in Indonesia, with a significant impact on the country's economy. The government's policy to increase excise tariffs on tobacco products has been implemented to reduce cigarette consumption and protect public health. However, the policy has also raised concerns about its impact on the business competition law. The excessive increase in excise tariffs has the potential to create new problems, such as increasing consumption of tobacco products that are not regulated. This phenomenon shows that the policy in question can actually create new problems, namely increasing consumption of tobacco products that are not regulated.

Excise Policy and Health Implications

The increase in excise rates in tobacco products, as regulated in PMK 191/PMK.010/2022, has the main goal to reduce cigarette consumption in the community for public health. From a health point of view, this policy is expected to reduce the number of smokers and the adverse effects caused by smoking. However, in practice, excessive increase in excise pace has the potential to create the opposite effect, where consumers turn to cheaper cigarette products or even illegal cigarettes. This phenomenon shows that the policy in question can actually create new problems, namely increasing consumption of tobacco products that are not regulated.

The World Health Organization (WHO) has recommended that governments implement policies to reduce tobacco consumption, including increasing excise tariffs. However, the WHO also emphasizes that the policy should be implemented in a way that does not harm the business competition law. The excessive increase in excise tariffs has the potential to create a monopoly in the market, where only a few companies can afford to produce and sell tobacco products. This can lead to a decrease in the number of companies operating in the market, which can harm the business competition law.

Business Competition Legal Analysis

From the point of view of business competition law, high excise tariff policies can potentially harm business people in the tobacco product industry. When excise rates increase dramatically, the cost of production and the selling price of cigarettes will rise. This has implications for people's purchasing power, where consumers may turn to cheaper cigarette products or illegal products. With this increase, official businesses will experience competing difficulties, because their products become less affordable in the market.

The Business Competition Supervisory Commission (KPPU) plays an important role in assessing whether government policy will have a negative impact on competition in the market. KPPU has the authority to provide suggestions and input to the Ministry of Finance to review the applicable excise tariff policy. Thus, the role of the KPPU is very strategic in preventing monopolistic practices that can harm business actors who operate legally.

The Role of KPPU in Business Competition Law

The KPPU has a crucial role in ensuring that government policies do not harm the business competition law. The KPPU has the authority to investigate and assess whether government policies are in line with the business competition law. If the KPPU finds that a government policy is likely to harm the business competition law, it can provide suggestions and input to the government to review the policy.

In the case of the excise tariff policy, the KPPU has the authority to assess whether the policy is in line with the business competition law. If the KPPU finds that the policy is likely to harm the business competition law, it can provide suggestions and input to the Ministry of Finance to review the policy. This can include recommending a more gradual increase in excise tariffs, or implementing other policies to reduce tobacco consumption without harming the business competition law.

Conclusion

The policy of increasing excise tariffs on tobacco products as regulated in PMK 191/PMK.010/2022 needs to be reviewed. Excessive increase can potentially reduce people's purchasing power and divert consumers to illegal cigarette products. In the business framework of business competition, this policy must be balanced with attention to the sustainability of legal business in the tobacco sector. Through the active role of the KPPU, it is hoped that policies can not only protect public health but also provide opportunities for businesses to continue to compete in a healthy and fair manner.

In conclusion, the excise tariff policy on tobacco products has both positive and negative implications. On the one hand, the policy is expected to reduce cigarette consumption and protect public health. On the other hand, the policy has the potential to create new problems, such as increasing consumption of tobacco products that are not regulated. The KPPU has a crucial role in ensuring that government policies do not harm the business competition law. Through the active role of the KPPU, it is hoped that policies can not only protect public health but also provide opportunities for businesses to continue to compete in a healthy and fair manner.

Recommendations

Based on the analysis of the excise tariff policy on tobacco products, the following recommendations are made:

The government should review the excise tariff policy to ensure that it is in line with the business competition law.
The KPPU should play an active role in assessing whether government policies are in line with the business competition law.
The government should implement policies to reduce tobacco consumption without harming the business competition law.
The government should provide support to businesses in the tobacco sector to ensure their sustainability.

By implementing these recommendations, it is hoped that the government can create a policy that not only protects public health but also provides opportunities for businesses to continue to compete in a healthy and fair manner.

Q: What is the purpose of the excise tariff policy on tobacco products?

A: The purpose of the excise tariff policy on tobacco products is to reduce cigarette consumption in the community for public health. The policy aims to increase the cost of production and selling price of cigarettes, making them less affordable for consumers.

Q: How does the excise tariff policy affect business people in the tobacco product industry?

A: The excise tariff policy can potentially harm business people in the tobacco product industry. When excise rates increase dramatically, the cost of production and the selling price of cigarettes will rise, making it difficult for businesses to operate profitably.

Q: What is the role of the Business Competition Supervisory Commission (KPPU) in assessing government policies?

A: The KPPU plays a crucial role in assessing whether government policies are in line with the business competition law. The KPPU has the authority to investigate and assess whether government policies are likely to harm the business competition law.

Q: Can the KPPU provide suggestions and input to the government to review the applicable excise tariff policy?

A: Yes, the KPPU can provide suggestions and input to the government to review the applicable excise tariff policy. The KPPU has the authority to recommend a more gradual increase in excise tariffs or implement other policies to reduce tobacco consumption without harming the business competition law.

Q: What are the implications of the excise tariff policy on the business competition law?

A: The excise tariff policy can have a negative impact on the business competition law. The policy can create a monopoly in the market, where only a few companies can afford to produce and sell tobacco products. This can lead to a decrease in the number of companies operating in the market, which can harm the business competition law.

Q: How can the government balance the need to protect public health with the need to ensure the sustainability of legal business in the tobacco sector?

A: The government can balance the need to protect public health with the need to ensure the sustainability of legal business in the tobacco sector by implementing policies that reduce tobacco consumption without harming the business competition law. This can include implementing a more gradual increase in excise tariffs or implementing other policies to reduce tobacco consumption.

Q: What are the potential consequences of the excise tariff policy on the tobacco industry?

A: The potential consequences of the excise tariff policy on the tobacco industry include:

A decrease in the number of companies operating in the market
A decrease in the number of jobs available in the industry
An increase in the cost of production and selling price of cigarettes
A decrease in the purchasing power of consumers
An increase in the consumption of tobacco products that are not regulated

Q: How can the KPPU ensure that government policies do not harm the business competition law?

A: The KPPU can ensure that government policies do not harm the business competition law by:

Investigating and assessing whether government policies are likely to harm the business competition law
Providing suggestions and input to the government to review the applicable excise tariff policy
Recommending a more gradual increase in excise tariffs or implementing other policies to reduce tobacco consumption without harming the business competition law

Q: What is the role of the government in ensuring that the excise tariff policy does not harm the business competition law?

A: The government has a crucial role in ensuring that the excise tariff policy does not harm the business competition law. The government can:

Implement policies that reduce tobacco consumption without harming the business competition law
Provide support to businesses in the tobacco sector to ensure their sustainability
Review the excise tariff policy to ensure that it is in line with the business competition law

Q: How can the government balance the need to protect public health with the need to ensure the sustainability of legal business in the tobacco sector?

A: The government can balance the need to protect public health with the need to ensure the sustainability of legal business in the tobacco sector by:

Implementing policies that reduce tobacco consumption without harming the business competition law
Providing support to businesses in the tobacco sector to ensure their sustainability
Reviewing the excise tariff policy to ensure that it is in line with the business competition law