Tobacco Excise Tax Is Rising, Indonesians Smoking Habit Is Changing

Indonesia has started to increase the tobacco excise tax since the beginning of 2022 with an increased excise rate up to 12% [1]. This policy continues to be applied for tobacco products like cigarettes in 2023 with an additional increased excise rate of up to 10% [2].

As one of 15 top countries with the highest number of smokers in the world [3], in February 2023 Snapcart conducted a study to find out how this policy has affected Indonesian consumers’ smoking habit and behavior.

This time, as a capital city and the most populous province in Indonesia [4], DKI Jakarta has been chosen to be the area where we conducted our research. And from 1.176 samples (588 male & 588 female) from age 18+, here are our findings.

Our study found a quite intriguing fact, like even though almost all smokers in Jakarta said that cigarettes have become a little bit more pricey since 2022, but more than a half (51%), which is dominated by SES Lower think that the price is still reasonable. Meanwhile the rest of them (49%), which is dominated by SES Upper and Middle think that the price increase of cigarette is too expensive.

Furthermore, even though majority of people consider the increasing level of cigarettes’ price is acceptable, but interestingly at the same time, 88% of consumers, which is dominated by SES Upper confessed if the increasing level of cigarettes’ price is higher than other products that they usually consume.


On the other hand, in order to deal with this issue, we figured out that Indonesian consumers’ smoking habit has changed, like most of them (51%) confessed that they have started reducing their expense for smoking, and only 8% who increase their expense to buy cigarettes.

It’s All About Taste

Almost everyone has favorite brand(s), which they always consume or use in their daily life. We can see the proof of this phenomenon in this study where instead of switching to other cheaper products after the price of their favorite cigarette brand(s) is increasing, majority of Indonesians (58%), especially who come from SES Lower still choose their favorite brand to smoke, even though they need to buy it in less quantity to save their money. You can see the detail of the customers’ loyalty brand on the graphic below.


Furthermore, speaking of Indonesian consumers’ taste in smoking, this research has also shown us that among 31% smokers in Jakarta, majority of them are consumers of regular cigarettes (rokok bakar), and they are dominated by male (81%) & people above 30 years old (82%). Meanwhile people who prefer consuming e-cigarettes are dominated by female (42%) and people under 30 years old (31%).

Request to make an infographic, graphic, and images (Instagram feed) for cigarettes article-PTP - 407-02

On the other hand, among 23% people who choose other alternatives to enjoy the sensation of tobacco after its price has increased have revealed to us that most of them (41%), which is dominated by female has started to consume certain candies like nicotine gum to replace cigarettes. Meanwhile on the other side, male consumers are the ones who stay loyal toward regular cigarette (rokok bakar), even though they choose to consume no brand cigarettes with cheaper price.

Over and above that, regardless of how the excise tax for e-cigarettes is higher than regular cigarettes, which is up to 15% [5], interestingly 71% people who choose “other alternatives” in this survey, which is dominated by SES Upper are switching to e-cigarettes rather than consuming any other substitutions of regular cigarettes.


Consumers’ Plans In The Future

In Indonesia, the excise tax would keep increasing until 2024 (for regular cigarettes) and even longer for e-cigarettes, which is up to the next five years [6], and this study found out this case would definitely change Indonesian consumers’ behavior.

When we asked our respondents about their plans on this case, most of them (45%) said that they would reduce their expense on cigarettes, 22% plan to find any substitutions of cigarettes, and 15% would even stop smoking at all. You can see their complete answers on the infographic above.


Interested to know further about consumers’ habit and behavior toward market trends? Contact us at partners@snapcart.global .



[1] https://tobacconomics.org/blog/indonesias-tobacco-tax-reform-took-effect-at-the-start-of-2022-and-is-projected-to-reduce-tobacco-use/

[2], [5], [6] https://kumparan.com/kumparanbisnis/cukai-rokok-naik-10-persen-di-2023-dan-2024-daya-beli-konsumen-bakal-tergerus-1zJGJzQuPZb

[3] https://www.liputan6.com/global/read/5184327/daftar-negara-dengan-perokok-terbanyak-di-dunia-indonesia-masuk-15-besar

[4] https://databoks.katadata.co.id/infografik/2022/09/06/10-provinsi-terpadat-di-indonesia-jakarta-juara

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