Indonesia’s expanding vape market raises pressure for tighter nicotine controls

Vaping expands as nicotine changes form

Indonesia is confronting a rapidly changing nicotine market as electronic cigarettes become more accessible, discreet and varied in flavor. Jakartamu.com reports that small devices, flavored liquids and quickly dissipating vapor have helped vaping attract young consumers even as the government increases the fiscal burden on conventional cigarettes.

The expansion is part of a much larger international industry. The global vape market is estimated at US$45.7 billion in 2025 and around US$59.2 billion in 2026, according to figures cited by Jakartamu.com. China is the main production center and largest exporter. Chinese customs data put the country’s electronic cigarette exports at about US$10.96 billion in 2024, with the United States serving as the largest market for those Chinese products.

Indonesia is also becoming a significant growth market. The 2023 Indonesian Health Survey, or SKI, found that 3.2% of the population used electronic cigarettes. Regional rates were considerably higher: 9.6% in the Special Region of Yogyakarta, 8.5% in Bali and 6.3% in Jakarta. These differences suggest that adoption is especially advanced in major urban, tourism and student markets.

Excise duties have not removed consumer demand

Electronic cigarettes are subject to excise tax, but taxation has not eliminated their appeal. For open-system liquid products, Indonesia set the 2025 excise rate at Rp636 per milliliter and the minimum retail price at Rp1,368 per milliliter. The policy puts vaping within the country’s tobacco tax framework, although the continued increase in use indicates that price measures alone have not contained demand.

Data cited by the Health Ministry show different prevalence levels depending on the survey, but both series point upward. Electronic cigarette use increased from 0.06% in the 2018 Basic Health Research survey to 0.13% in SKI 2023. The Global Adult Tobacco Survey recorded a substantially larger rise, from 0.3% to 3%. The variation underscores the need for consistent market and public-health measurement as the product category develops.

Youth exposure is a central concern. The 2019 Global Youth Tobacco Survey found that 19.2% of Indonesian students aged 13–15 used tobacco products. That figure covers tobacco products rather than vaping alone, but it illustrates the scale of nicotine exposure among adolescents. The World Health Organization says electronic cigarettes are promoted to young people through social media, influencers, flavors and appealing product design.

Health findings increase regulatory pressure

Indonesia’s National Research and Innovation Agency, or BRIN, has also reported health findings from its research. BRIN head Arif Satria said on September 29, 2026, that the agency had identified effects involving insulin, the pancreas and the lungs. He said about 92% of the lung samples examined were affected and that diabetes-related effects reached 100% within the studied sample. The source did not specify the sample size, so the findings cannot establish population-wide prevalence.

WHO states that electronic cigarettes are not safe. Their aerosols may contain nicotine and toxic substances that pose risks to the lungs, heart and the developing brains of children and adolescents. Research published in NEJM Evidence, as summarized by Jakartamu.com, also found that people who use both cigarettes and vapes faced higher risks than cigarette-only smokers for several health outcomes.

Oversight must address a broader nicotine market

The regulatory question now extends beyond whether electronic cigarettes resemble conventional tobacco products. Indonesia must decide how excise rates, minimum prices, marketing restrictions, age controls and product oversight should operate across a market in which nicotine is delivered through multiple formats.

For manufacturers, distributors and retailers, tighter rules could affect flavors, digital promotion, packaging and access to younger consumers. For policymakers, the challenge is to balance excise revenue against health costs that may emerge long after a sale. Continued market growth despite taxation indicates that enforcement and youth-protection measures will be as important as the headline tax rate.