President Joko Widodo has signed Presidential Regulation Number 82 of Year 2015 about the use of cigarette excise from the regions to cover the financial deficit of the Health Social Security Organizing Agency (BPJS). The agency has experienced a Rp1.64 Trillion deficit in this year.
The amount of cigarette tax contribution as intended, according to this presidential decree, is stipulated that 75% of the 50% realization of cigarette tax revenue is part of the rights of each province, regency or city.
The health insurance agency previously hoped that the government would channel funds from cigarette excise to balance its financial flows. The discussion on the use of cigarette excise has been carried out since May 2018.