New Regulations on the Use of Tobacco Excise Funds

The Ministry of Finance is drafting Regulation of the Minister of Finance (“ RPermenkeu ”) on the Use of Tobacco Excise Revenue Sharing Funds (Penggunaan Dana Bagi Hasil Cukai Hasil Tembakau- “ DBH CHT ”). This provision aims to harmonize the allocation of DBH CHT by province, as already stipulated in Regulation of the President No. 118 of 2025 (“ Perpres 118/2025 ”) (“ Perpres 118/2025 ”) on the State Revenue and Expenditure Budget (“ APBN ”) for the 2026 Fiscal Year.

“This RPermenkeu will replace Regulation of the Minister of Finance No. 72 of 2024 on the Use of DBH CHT (“ Permenkeu 72/2024 ”),” said Unan Pribadi, Director of Harmonization of Laws and Regulations (Harmonisasi Peraturan Perundang-undangan– “ HPP ”) III of the Directorate General of Laws and Regulations (Direktorat Jenderal Peraturan Perundang-undangan- “ DJPP ”), in an interview with Hukumonline.

This draft regulation will govern the use of DBH CHT for six priority programs, namely: improving the quality of raw materials, fostering industry development, supporting social environment programs, disseminating excise regulations, and combating illegal excisable goods. Revenue from tobacco excise will also be directed toward community welfare, public health, law enforcement, and supporting development in regions that produce tobacco excise.

“It is currently in the process of harmonization,” added Unan.