JAKARTA – The Indonesian government has set a tobacco excise target of Rp230.09 trillion for 2025, marking a 6.5% reduction from this year's target.

This adjustment is outlined in Presidential Regulation (Perpres) No. 201/2024, regarding the Detail of 2025 State Budget (APBN), which was enacted late last week.

Notably, the government has no plans to increase tobacco excise rates in 2025, a departure from previous years, where the excise tax had been raised by an average of 10% annually since 2022.

Monitoring the board following this news of the lower excise target, shares of major tobacco companies saw gains by 3.30 PM WIB.

Stocks of PT Hanjaya Mandala Sampoerna Tbk (HMSP), PT Gudang Garam Tbk (GGRM), PT Wismilak Inti Makmur Tbk (WIIM), and PT Indonesian Tobacco Tbk (ITIC) all recorded price increases.

HMSP shares rose by 2%, or 10 points, to Rp665 per share compared to its position at opening bell. Similarly, GGRM gained 2%, climbing to IDR 13,675 per share, while WIIM was up by 1% or 5 points to Rp765 per share, and ITIC increased by 2%, or 4 points, to Rp266 per share. (KR/ZH)