Indonesia has one of the highest ratesof cigarette consumption in the world. Tobacco use heavilyburdens population health, undermines the quest foruniversal health coverage, and inflicts heavy direct andindirect economic costs. Higher tobacco taxes to increasecigarette prices contribute to reducing tobacco consumptionand hence tobacco-related disease and death, whileincreasing public resources for development. The Indonesiangovernment has recently raised tobacco tax rates. Thisstrategy has brought initial gains and should beaggressively ramped up. By raising tobacco taxes towardWHO-recommended levels (at least 70 percent of retail price)and streamlining its tobacco excise tax structure, Indonesiacan rapidly cut smoking rates, save many lives, and boostgovernment revenue. Such policies would contribute torealizing Indonesia's demographic dividend by keepingpeople healthy.