Tobacco Excise Revenue-Sharing Cash Transfer Procedures: PMK 32/2026

Indonesia returns a portion of its tobacco excise receipts to producing and affected regions through a revenue-sharing transfer known as Dana Bagi Hasil Cukai Hasil Tembakau, or DBH CHT. Part of that allocation reaches households directly as unconditional cash. Tata Cara Penyaluran Bantuan Langsung Tunai Dana Bagi Hasil Cukai Hasil Tembakau (Procedures for Disbursing Direct Cash Assistance from Tobacco Excise Revenue-Sharing Funds), recorded as PMK 32/2026, sets out how that disbursement is run: who may be counted as a recipient, who checks the count, and how the money travels from a government account into an individual's account.

Issue

Cash transfers funded from earmarked excise revenue carry a specific administrative problem. The eligible population is defined by employment in a legal cigarette factory rather than by a standing poverty register, so the recipient list cannot simply be lifted from national social assistance databases. Payments also have to avoid duplicating benefits a household already receives through other programmes. The regulation responds by fixing a sequence — data collection, verification, validation, determination, then payment — and assigning each step to a named actor, so that no stage of the process depends on informal practice.

Key Provisions

Pasal 1 supplies the definitional groundwork. It defines DBH CHT as the revenue-sharing component derived from excise on domestically manufactured tobacco products, and distinguishes it from residual balances, defined as the surplus between amounts already transferred by the central government and the portion lawfully spent within one or more budget years. The same article draws a narrow definition of a cigarette factory worker (Buruh Pabrik Rokok): rollers, labellers, packers, quality control staff, raw-material and finished-goods warehouse workers, and other personnel directly connected to production. Distributors, administrative staff, security personnel, and marketing or sales personnel are excluded. Pasal 1 also defines verification as the examination and assessment required to establish that data are correct, and validation as the act of establishing that data are legally sound — two functions the later provisions keep apart.

Pasal 6 places implementation with the regional government and requires it to form a DBH CHT team together with a team secretariat. The team's mandate covers data collection and verification of prospective recipients, validation and determination of the final list, disbursement, receipt of complaints, and reporting. The team is established by decision of the regional head, and its secretariat by decision of the regional secretary.

Pasal 7 governs data collection. Prospective recipients fall into four categories: cigarette factory workers, workers who have been terminated, workers whose factory has been declared bankrupt, and other members of the community. For terminated workers, the article directs the team to draw on population-condition data held by the ministry responsible for social affairs. Verification then covers four points — identity consistency, whether the person's category matches the applicable criteria, a duplication check against other social assistance receipts, and completion of the applicant form. Identity verification is assigned to the regional apparatus responsible for civil registration, while the remaining three checks stay with the DBH CHT team.

Pasal 8 turns verified data into a binding list. Validation is carried out by the team jointly with the partner disbursing bank under a cooperation agreement, and the result takes the form of a validation minute signed by the team chair and the bank. Recipients and benefit amounts are then set by decision of the regional head, and Pasal 8 requires that the determined list be published on a website or through other information channels — a transparency step that runs parallel to the single-data obligations placed on regional administrations.

Pasal 9 covers payment. Disbursement is non-cash, executed by the partner bank under the cooperation agreement, and proceeds in three stages: registration on presentation of an electronic identity card, education and outreach, and transfer through a virtual account. The article states that funds reach the recipient's account without any fee or tax deduction imposed by the disbursing bank, and that every transfer must be reconciled.

Implications

The design shifts the administrative burden toward documentation. A recipient must hold an electronic identity card and clear a duplication check before payment, which links participation to civil registration coverage in the region concerned. For regional administrations, the requirement to publish the determined recipient list creates a public record against which the categories in Pasal 7 can be tested. The prohibition on fees and tax deductions in Pasal 9 fixes the transferred amount at the figure set by the regional head's decision, leaving the reconciliation duty as the mechanism for detecting discrepancies after the fact.

Regulatory Context

DBH CHT sits within the broader system of transfers to the regions, alongside the budgetary arrangements examined in the review of the 2026 state budget law and the sub-national spending rules found in the village governance and budget framework. Its earmarked character means the funds carry usage restrictions set by higher-level rules, and the cash transfer described here is one permitted use among several.

Read the full regulation in the CRPG Law Database.

Methodology: This memo summarises the official regulation text and is not legal advice; report corrections to contact@crpg.info.

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