Sri Mulyani Officially Increases Cigarette Prices in 2022
Entering 2022, the government through the Ministry of Finance ensures that cigarette prices are more expensive than last year.
Minister of Finance Sri Mulyani Indrawati has officially increased the excise rate on tobacco products (CHT) or cigarette excise and others starting January 1, 2022.
This is stated in the Regulation of the Minister of Finance Number 192/PMK.010/2021 concerning Excise Tariffs for Tobacco Products in the Form of Cigarettes, Cigars, Leaf Cigarettes or Klobot, and Tobacco Slices.
"When this Ministerial Regulation comes into force, the Head of the Office re-establishes the excise rate and will take effect on January 1, 2022," said Article 17 of the Ministerial Regulation, quoted by FMM from Mind-rakyat.com, Sunday, January 2, 2022. In Minister of Finance Regulation Number 192/PMK.010/21, the retail selling price limit and the excise rate per stick or gram of tobacco products are included. The products that are subject to the price increase target are Machined Kretek Cigarettes (SKM), Hand Kretek Cigarettes (SKT), Machine White Cigarettes (SPM), Filter Hand Kretek Cigarettes (SKTF), White Hand Cigarettes (SPT), Filter Hand White Cigarettes (SPTF), Rhubarb Frankincense Cigarettes (KLM), Cigars, Leaf Cigarettes or Klobot, and Slice Tobacco.
The following is a breakdown of the 2022 cigarette prices:
Machine-made Kretek Cigarettes (SKM)
Group I
Excise rate per stick/gram: IDR 985
Retail selling price limit (HJE) per stick: IDR 1,905
Group II
Excise rate: IDR 600
HJE per stick: IDR 1,140
Machined White Cigarettes (SPM)
Group I
Excise rate: IDR 1,065
Selling price limit per stick: IDR 2,005
Group II
Excise rate: IDR 635
Selling price limit per stick: Rp1,135
Hand Kretek Cigarettes (SKT/SPT)
Group I
Excise rate: IDR 345
HJE per stick: more than IDR 1,135 to 1,635
Group II
Excise rate: IDR 205
HJE per stick: IDR 600
Group III
Excise rate: IDR 115
HJE per stick: minimum IDR 505
Filter Hand Clove Cigarettes (SKTF/SPTF)
Excise rate: IDR 985
HJE per stick: minimum IDR 1,905
Tobacco Slice or TIS (Unclassified)
Excise rate: IDR 10
style="font-family: arial; font-size: medium;">HJE per stick: from IDR 55 to IDR 180
Excise rate: IDR 25
HJE per stick: from IDR 180 to IDR 275
Excise rate: IDR 30
HJE per stick: more than IDR 275
Leaf Cigarettes (KLB)
Excise rate: IDR 30
HJE per stick: Rp 290
KLM (Rhubarb Frankincense Cigarettes)
Excise rate: IDR 25
HJE per stick: IDR 200
Cigars (unclassified)
Excise rate: IDR 275
HJE per stick: from IDR 495 to IDR 5,500
Excise rate: Rp1,320
HJE per stick: from IDR 5,500 to IDR 22,000
Excise rate: IDR 11,000
HJE per stick: from IDR 22,000 to IDR 55,000
Excise rate: IDR 22,000
HJE per stick: from IDR 55,000 to IDR 198,000
Excise rate: IDR 110,000
HJE per stick: more than Rp.198.000.in the meantime
Cigarette Excise Tariffs Rise, Cigarette Producers Shares Fall Several cigarette makers' stocks fell at the close of trading today. This is because after the government set an increase in cigarette excise rates starting January 1, 2022, with an average increase of 12 percent. Judging from RTI, at the close of the second trading session, Tuesday (14/12/2021), the following are the movements of four cigarette producer stocks today:
1. PT Hanjaya Mandala Sampoerna Tbk (HMSP) HMSP has fallen since the opening bell this morning to reach the Rp980 area from yesterday's closing at Rp1,020. HMSP shares closed down -2.45 percent at Rp.995. Meanwhile, HMSP's performance remained stagnant for a week and fell -3.86 percent in a month. The year-to-date performance also fell -33.55 percent. Foreign investors sold HMSP accumulatively reaching IDR 2.40 billion and increased the accumulated number of foreign net-sells per week to IDR 2.17 billion.
2. PT Gudang Garam Tbk (GGRM) GGRM fell since the opening this morning to touch its lowest point at Rp31,050. Throughout today's trading until the close of trading, GGRM shares fell -2.79 percent at the level of Rp. 31,350. The owner of market caps worth Rp. 60.27 trillion still showed an unsatisfactory performance in a week of -1.80 percent and a month that fell -8,67 percent. The year-to-date performance of this issuer also slumped -23.54 percent. Foreign investors were observed today selling as much as Rp. 13.03 billion, adding to the accumulated foreign net-sell in the week of Rp. 26.67 billion.
3. PT Indonesia Tobacco Tbk (ITIC) ITIC fluctuated throughout today's trading. At the close of trading today, ITIC shares fell 1.35 percent at Rp292, after falling at the opening this morning to touch the Rp290 area. Just like the two previous issuers, in a week ITIC's performance was still in the red zone at -1.34 percent and in a month it was -8.13 percent landslide. The year-to-date performance also slumped -54.77 percent. This small-caps issuer seems to be a foreign target, with today's cumulative net-buy record of IDR 56.21 million and an additional month of foreign buying action of IDR 676.21 million.
4. PT Wismilak Inti Makmur Tbk (WIIM) WIMM moved below yesterday's closing level throughout today's trading. Even though it had entered a positive point of up to Rp488, at the close of today, WIMM shares were sluggish -1.65 percent at Rp478 from yesterday's closing at Rp486. The frequency of transactions is not more than 1000, making WIIM's performance tend to be illiquid. The week's performance noted that WIIM was still down -2.05 percent and in a month it fell -4.02 percent. The year-to-date performance is also still in the negative area of -11.48 percent. Foreign investors seem to have bought WIIM today as much as Rp. 12.45 million, and added foreign net-buys in a week to Rp. 49.45 million.
