Indonesia's East Java Vaping Sector Grows, with APVI Outlining Industry Scale and Excise Revenue
Indonesia's vaping industry is taking shape in East Java, where the Association of Individual Vaping Products (APVI) said the region now hosts a mature ecosystem of 15 manufacturers, 1,200 retail stores and 20 distributors, as the country's excise tax on e-cigarettes continues to climb.
The figures were released on Oct. 6 at the inauguration of APVI's East Java regional board in Surabaya. The association said the data is an indicator that the local vaping ecosystem has reached a stable production and retail base, with an industry committed to compliance.
The tax picture is notable. Indonesia's Ministry of Finance set e-cigarette excise standards through the 2024 Number 96 decree, applying differentiated rates by device type. Open liquid systems are taxed at 636 rupiah per millilitre, while closed-system devices are taxed at 6,776 rupiah per millilitre. For 2025, the national target for e-cigarette excise income was 2.2 trillion rupiah, and by July 2026 the tax take had reached nearly 1.7 trillion rupiah, APVI said.
Local trade groups and APVI have asked for a regulatory framework that balances public health, government revenue and the sector's jobs. Sandee Surya, chair of APVI's East Java council, said the region's vaping industry still faces market shifts, and that compliance is the core precondition for continued growth.
The association's board also reaffirmed its age-sales rules, saying its members will not sell to anyone under 21, and that all products must be free of narcotics-related substances. APVI said its East Java members signed a joint compliance pledge covering these standards.
Budiyanto, national chair of APVI, said the sector contributes meaningfully to government revenue, and that the industry needs a stable and clear regulatory framework to sustain that contribution. A representative of the East Java Chamber of Commerce and Industry (Kadin Jatim) said future policy should balance public health, tax revenue, sustainable industry growth and employment.
For East Java, the message is that the industry has moved beyond a grey import trade and into a locally organised, tax-paying structure. The question policymakers now face is how much growth the region wants to encourage and at what regulatory price.