Vape associations, consisting of the Bali Vaporiser Association (AVB), the Alliance of Indonesian Vapers (AVI), the Indonesian E-Liquid Producers Association (PPEI), the Indonesian Personal Vaporizer Association (APVI), and the Indonesian Vape Retail Association (ARVINDO), expressed their disappointment with the attitude of the Ministry of Finance's Directorate General of Fiscal Balance (DJPK), given that on December 21, 2023, a direct audience was held between the associations and DJPK to postpone the implementation of the policy until 2026.

APVI Secretary-General Garindra Kartasasmita stated that the socialization process conducted by the Ministry of Finance's DJPK on December 27, 2023, felt overly forced and rushed.

Garindra stated, "At that time, business owners only received the online socialization invitation link at 1:50 PM WIB. However, the socialization itself was scheduled to take place 10 minutes later, precisely at 2:00 PM WIB."

"Today, December 27, 2023, we were informed that the government has decided to impose an excise tax on electronic cigarettes starting January 1, 2024. Of course, we cannot accept this unilateral decision because it directly impacts the sustainability of our businesses. Despite this, we have always complied with government regulations," added Garindra.

Previously, representatives from all associations had made efforts by sending two written letters and requesting an audience with the Ministry of Finance regarding their views on the implementation of the tax for electronic cigarettes (vape), but these efforts were fruitless and caused disappointment among the associations. Consequently, all vape associations decided to visit the Ministry of Finance directly on December 21, 2023, demanding an explanation and transparency from the Ministry of Finance.

After receiving an audience from the associations, the Ministry of Finance's DJPK responded by accepting the aspirations conveyed regarding the proposal to postpone the implementation of the cigarette tax for electronic cigarettes and the request for no excise duty increase when the regulation is also implemented.

"During the audience, the representative from the Ministry of Finance, Bonatua Mangaraja Sinaga, a Senior Expert in Central and Regional Finance Analysis, stated that they would seek a middle ground for the implementation of the cigarette tax in 2026, considering that the excise policy is already in effect for 2023-2024, while in 2025 there will be a VAT increase, so 2026 could be considered for the imposition of electronic cigarette tax as long as the excise does not increase in that year," said Garindra. 

On the other hand, Fachmi Kurnia Firmansyah Siregar, as the chairman of ARVINDO, also known as Awing, expressed his disappointment with the decision made by the Ministry of Finance's DJPK.

"In our opinion, this is a policy that is not at all supportive of MSME actors and harms people who feel they can quit smoking because of vaping," Awing said.

"Because, in addition to the excise tax increase, simultaneously and without direct discussion, imposing this cigarette tax seems to want to kill an industry that is not only still new but also considered a lower-risk solution in many countries for people who want to quit smoking," he continued.

According to Awing, who represents vape industry players in Indonesia, the increase in the e-cigarette tax in 2024 is considered burdensome for Micro, Small, and Medium Enterprises (MSMEs).

"It is evident that this highly disproportionate increase is very burdensome for MSME players in the open system. Meanwhile, we all know that for closed-system electronic cigarettes, the dominant players are large corporations, imported finished goods, and international companies," Awing explained.

As conveyed by Awing, Elmo Eliando, who serves as the Chairman of the Industry Sector of the APVI Central Executive Board, also voiced a similar view. He reminded the Government of the importance of industry readiness to face additional burdens, considering that most electronic cigarette business players are MSMEs who started their businesses from scratch.

"The Ministry of Finance's decision to still force the implementation of the cigarette tax for electronic cigarettes as of January 1, 2024, as conveyed by the Director of Regional Taxes and Regional Levies of DJPK, Lydia Kurniawati Christyana, was very surprising to business owners, especially since DJPK itself had previously promised to find a middle ground regarding the implementation time of the cigarette tax for electronic cigarettes in 2026," Elmo revealed.