Finance Minister Urges Illegal Cigarette Makers to Join the

Finance Minister Purbaya Yudhi Sadewa on 3 November 2025 dispatched a team to Madura, East Java, to discuss moving illegal cigarette manufacturers into the Aggregated Tobacco Factory Cluster (APHT), a legal production network. The initiative is part of the government’s broader effort to regularize the tobacco sector.

APHT integrates all stages of tobacco processing within a legally recognized zone, allowing authorities to monitor output and collect excise duties transparently. By joining, illicit manufacturers can operate legally, avoid enforcement actions, and contribute to state revenue. The minister emphasized that guidance is needed for producers to comply with existing regulations.

Successful integration is expected to increase excise tax receipts and simplify oversight of distribution, including detection of foreign cigarettes entering the market. The government has stated it will not permit illegal products to compete with compliant businesses. Field teams will continue dialogues with remaining illegal producers.