Indonesia’s e-cigarette industry is entering a new phase. Excise revenue from electronic cigarettes grew steadily in 2025, reflecting both rising consumption and stronger regulatory oversight. The trend is pushing industry players to adopt more transparent and compliant business practices as a foundation for long-term sustainability.
Key Facts & Background
- Revenue Growth: According to the Directorate General of Customs and Excise, e-cigarette excise revenue grew 7.38 percent in 2025 compared to the previous year.
- Product Contribution:
- Open-system liquid e-cigarettes contributed the largest share of revenue.
- Closed-system devices followed, showing consistent demand.
- Solid-form products made up a smaller but notable portion of contributions.
- Regulatory Context: The government has emphasized stricter compliance and transparency in the e-cigarette sector, aligning excise collection with broader public health and fiscal goals.
- Industry Response: Producers and distributors are increasingly adopting clearer reporting practices, regulatory adherence, and sustainable business models to maintain credibility.
- Economic Role: Excise revenue from e-cigarettes adds to state income while shaping the regulatory framework for emerging tobacco alternatives.
Disclaimer: AI-data analytics across multiple sources, with human editorial oversight.
Strategic Insights
The 7.38 percent growth in e-cigarette excise revenue during 2025 highlights the sector’s resilience and evolving role in Indonesia’s economy. While open-system products dominate contributions, the broader trend reflects rising consumer adoption and the government’s success in integrating excise policy into new tobacco alternatives. For the industry, transparency and compliance are no longer optional but essential for long-term sustainability, especially as regulators balance fiscal objectives with public health concerns.