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Cigarette Tax Revenue for Customs and Excise Enforcement: PMK 70/2026

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Regulatory digest Published 1 November 2026 Machine-drafted

Minister of Finance Regulation Number 70 of 2026 (PMK 70/2026) sets out how part of the revenue from the cigarette tax (Pajak Rokok) may be used by the central government to fund law enforcement in customs and excise. It was signed electronically in Jakarta on 28 September 2026 under the title of Minister of Finance by Suahasil Nazara. The held copy leaves the promulgation date and the State Gazette number blank. The regulation has 14 articles in eight chapters, and its first consideration states that the purpose is to increase customs and excise revenue and to protect domestic industry.

Key Provisions

Definitions (Pasal 1). The regulation defines Pajak Rokok as a levy on cigarette excise collected by the central government. It also defines the Maximum Disbursement of PNBP Pajak Rokok, the ceiling on disbursement of state spending funded from that non-tax revenue in the budget implementation document (DIPA).

Use of the revenue (Pasal 2). Based on the State Budget Law and its amendments, cigarette tax revenue may be used for customs and excise law enforcement. The amount follows the figure set in the State Budget Law. That amount is recorded as non-tax state revenue (PNBP Pajak Rokok) at the Ministry of Finance and is deposited into the State General Cash Account.

Scope of enforcement (Pasal 3). Enforcement covers five areas: customs and excise supervision, including intelligence, patrols, enforcement action, case handling, management of operational equipment and supervisory facilities; drafting and improving policy and regulation; strengthening human resources; developing information technology systems; and public communication and coordination. Pasal 3(2) provides that this enforcement is carried out by the Directorate General of Customs and Excise.

Deposit and Reconciliation

Under Pasal 4, PNBP Pajak Rokok is deposited by book transfer from the special third-party calculation account into the State General Cash Account, at the same time as the regional government share of Pajak Rokok is deposited. Pasal 5 bases the amount on realised cigarette tax receipts. The Directorate General of Treasury and the Directorate General of Customs and Excise supply that data to the Directorate General of Fiscal Balance, and the three directorates general reconcile it. The result is recorded in an agreed minute that states at least the PNBP amount for the central government and the share of cigarette tax receipts for regional governments. Payment, recapitulation and collection of underpayments follow the existing ministerial regulation on collection, deduction and deposit of Pajak Rokok (Pasal 6). Refunds of overpaid cigarette tax are deducted from the realised receipts (Pasal 7).

Budgeting and Disbursement

Pasal 8 ties spending to projected PNBP Pajak Rokok. The projection is the enforcement share multiplied by estimated cigarette tax receipts, and the estimate is the Pajak Rokok rate under the law on central-regional fiscal relations multiplied by the cigarette excise target. The projected amount is the upper limit of the enforcement allocation. Allocation takes place in the current budget year through budget revision (Pasal 9). Once the DIPA is approved, the Directorate General of Customs and Excise applies to the Directorate General of Treasury for a Maximum Disbursement determination (Pasal 10). Accountability, accounting and reporting follow the existing ministerial regulations on PNBP management and on agency accounting and financial reporting (Pasal 11). The Minister supervises the budget (Pasal 12).

Transitional Rules and Entry into Force

For the 2026 budget year, Pasal 13 bases use of the funds on projected PNBP Pajak Rokok for August to December 2026, and that projection is the ceiling for 2026. Deposits for 2026 begin with the third quarter, based on realised cigarette tax receipts for August and September 2026. Pasal 14 provides that the regulation enters into force on the date of promulgation.

Checked against the official text of PMK 70/2026 on 1 November 2026. This is not legal advice; report corrections to contact@crpg.id.

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