Vapeboss – The trend of consuming e-cigarettes or vapes in Indonesia has started to increase. This is expected to also boost state revenue from tobacco excise. Based on the adult tobacco use report (GATS), the prevalence of e-cigarette smokers rose from 0.3 percent in 2011 to 3 percent in 2022.

Executive Director of Segara Institute Piter Abdullah said that the trend of vape consumption is not only happening in Indonesia. In a report titled "A Roadmap To a Smoke Free Society" released by the Swedish association of health experts, e-cigarette use is also prevalent in Europe. Moreover, he continued, several countries have implemented safe and profitable policy improvisations. For example, by combining recommendations from the WHO Framework Convention on Tobacco Control (FCTC) with local government smoking bans.

According to Piter, e-cigarette consumption is generally driven by factors of spatial freedom, which also boosts sales.

"Those who use vapes do so because of spatial limitations. So e-cigarette smokers do it in the car or at their workplace," he said in a statement on Monday (27/3/2023).

Not only that, the relatively higher price of vapes is not an obstacle for people to consume this alternative product. He hopes that increasing e-cigarette consumption can also boost excise revenue.

"Price is not an issue for vape consumers. So the business prospects for this alternative cigarette are still there, but not large," he said.

Throughout 2022, the realization of tobacco excise tax for e-cigarettes was Rp 1.02 trillion. This is divided into revenue from closed-system liquid e-cigarettes amounting to Rp 119.47 billion, revenue from solid liquid e-cigarettes amounting to Rp 271.93 billion, and revenue from open-system liquid e-cigarettes amounting to Rp 627.11 billion.

Previously, the Director of Communication and User Guidance for Customs and Excise Services at the Directorate General of Customs and Excise (DJBC) of the Ministry of Finance, Nirwala Dwi Heryanto, stated that his agency continues to monitor both electric and conventional cigarette consumption in society. According to him, DJBC uses two supervisory approaches: soft approach and hard approach.

The soft approach involves coordinating with regional governments and relevant ministries/agencies to provide education and socialization.

"Meanwhile, with the hard approach, we take repressive actions in the form of cracking down on illegal cigarettes, both conventional and e-cigarettes," said Nirwala.

Source: Kumparan