Indonesia Customs: Vape Tax Is Regulation, Not a Ban
Indonesia’s Director of Customs Communication, Nirwala Dwi Heryanto, has clarified the government’s fiscal stance on the country’s growing e-cigarette sector. He noted that when the industry began expanding in 2015, it operated in a “regulatory vacuum” until July 2018, when vapes were officially categorized as excisable goods.
According to Nirwala, the excise duty was applied because vaping products meet key criteria: consumption should be controlled, distribution must be monitored, potential negative impacts exist, and taxation ensures fairness. “By imposing excise duty, consumption can be limited, the size of the industry can be mapped, the sector secured, and state revenue generated,” he explained. Vapes are now taxed under the tobacco framework.
However, he stressed that the decision to ban or allow vaping lies not with Customs or the Ministry of Finance, but with the Ministry of Health or the Food and Drug Supervisory Agency (BPOM).
This approach stands in sharp contrast to Singapore, which has prohibited vapes since 2018 and is now tightening enforcement further. Prime Minister Lawrence Wong announced that vaping will be treated as seriously as drug abuse, citing the discovery of harmful and addictive substances like etomidate in seized devices. “The real danger is what’s inside,” Wong warned, underscoring the difference in regulatory priorities between the two nations.
