Indonesia

Illicit Incidence was estimated at 9.7% in 2017, falling below the 10% threshold for the first time since 2012.
Indonesia
Illicit Trade Volume (Bn)
2012 2013 2014 2015 2016 2017
Illicit trade Incidence (%)
2012 2013 2014 2015 2016 2017
Total Tax Loss (IDR Tn)
2012 2013 2014 2015 2016 2017

Composition of Cigarette Consumption

322.1Bn Cigarettes
  • Cigarettes
    Bn
  • Legal Domestic Consumption (LDC)
    290.5
  • Non-Domestic Legal (NDL)
    0.2
  • Non-Domestic Illicit
    0.5
  • Domestic Illicit
    30.9
Total Cigarette Consumption
322.1Bn
Total Illicit Consumption
31.4Bn

Estimated Excise Tax Loss

IDR 13.3 Tn
  • IDR
    Tn
    USD Mn
  • Lost excise revenue
    11.3 845.1
  • Lost VAT revenue
    2 152.1
Actual revenue from excise duties on tobacco
IDR 162.5 Tn
Estimated Tax Loss From Illicit Consumption
IDR 13.3 Tn

Indonesia

  • Illicit Consumption fell by 22.2% to 31.4 billion cigarettes in 2017. This represented 9.7% of Total Consumption.

  • Illicit Consumption of cigarettes in Indonesia is almost entirely composed of Domestic Illicit. This is driven by the complex Excise Tax system, providing the opportunity and incentive for domestic manufacturers to under-declare their liabilities to authorities.

  • After rising for four consecutive years since the beginning of the Asia Illicit Tobacco Indicator research programme, Illicit Consumption declined in 2017. This follows a concerted effort by Customs & Excise to increase enforcement and combat illicit trade.

  • The Tax Loss from Illicit Consumption was estimated at IDR 13.3 trillion in 2017.

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