Cigarette factories contribute to development efforts<\/p>\n
By Tedy Novan, Ahmad Solikhan and Angger Jatiwijaya<\/p>\n
KUDUS, Central Java (JP): Passing through this town, we get
\nthe sensation of entering a large area full of billboards. From
\nthe town gates and the street light poles to the town's tower and
\nMasjid Agung, the biggest mosque in town, we see pictures
\nadvertising myriad cigarette brands.<\/p>\n
Formal institutions like police stations, public notice boards
\nand the calendar of the local government have also become
\nadvertising sites for cigarette factories. Ballyhoos of various
\nsizes are everywhere in public places. It is therefore not an
\nexaggeration to say that this historic town, which was a key
\nwitness to the spread of Islam on Java, is known as kota kretek
\n(town of clove cigarettes).<\/p>\n
The Association of Indonesian Cigarette Factories recorded
\nthat last year Kudus had 25 mid- and upper-sized cigarette
\nfactories and 61 small-scale (home industry) cigarette
\nmanufacturers. Some of them have operated for decades, including
\nBal Tiga, who has since the 1920s exported his products to 10
\nEuropean countries.<\/p>\n
Data issued by the Kudus administration shows that the total
\nproduction of all the factories is more than 35.8 billion
\ncigarettes a year, consisting of 20.901 billion manually produced
\nclove cigarettes, 14.852 billion machine produced clove
\ncigarettes and 47.79 million klobot (tobacco wrapped in a corn
\nleaf) cigarettes. It is from this production that Kudus, an area
\nof 425.15 square kilometers, the smallest regency in Central
\nJava, is able to pay the central government more than Rp 2
\nbillion rupiah (US$250,000) in taxes per day.<\/p>\n
Officially though, through a ministerial level regulation, the
\ntax on cigarette factories in the form of excise does not ever
\nenter the local government's coffers.<\/p>\n
However, the contribution of the cigarette factories in the
\ndevelopment of the Kudus regency has been sizable.<\/p>\n
\"Since 1976 the cigarette factories have been involved in
\nenvironmental programs in this region, such as the greening
\nprogram and the planting of trees lining the streets in Kudus,\"
\nsaid Dewi, a public relations employee at the Djarum cigarette
\nfactory.<\/p>\n
Moreover, various regional administration-related events, like
\nNational Games (PON) and the funding of sports education, are an
\nobligation for cigarette factories.<\/p>\n
They also build public facilities and become permanent donors
\nfor celebrations, cultural events, the Armed Forces' civic
\nmission in rural areas and social contributions which are given
\non a near-weekly basis.<\/p>\n
The most evident contribution of the cigarette factories is
\nthe provision of jobs. According to Sigit Tejo, spokesman of the
\nKudus regional administration, of the 666,216 residents in the
\nregency, 42,939 work at cigarette factories.<\/p>\n
The role and contribution of cigarette factories to regional
\ndevelopment can also be seen in Kediri regency in East Java,
\nanother clove cigarette-producing area.<\/p>\n
According to Sudarno of the Kediri Cigarette Factory
\nAssociation there were about 100 cigarette factories in Kediri in
\n1969. Now, only 11 remain in production. The biggest among them
\nis Gudang Garam, which was established in 1958.<\/p>\n
Gudang Garam, now seemingly the symbol of the town of Kediri,
\nemploys 30,500 female and 12.250 male workers. Its annual tax
\ncontribution amounts to Rp 1,768 billion.<\/p>\n
\"We also give contribution to the Kediri regional
\nadministration in the form of building permit tax and property
\ntax,\" said Mochammad Djamal, a Gudang Garam spokesman.<\/p>\n
Other contributions to the Kediri regional administration are
\nnot different from those of the cigarette factories of the Kudus
\nregion. Gudang Garam even asphalted the main roads to all its
\nfactory units and built Gedung Nasional, a building on Jl. Maj.
\nGen. Sungkono.<\/p>\n
Both Sigit and Djamal have admitted that besides the official
\ncontributions for development programs and public facilities,
\nthere is the tradition of giving upeti (tributes) to regional
\nadministration officials. \"This should not be interpreted
\nincorrectly. It is to maintain good relations,\" Djamal added.<\/p>\n
The pattern of relations between cigarette factories and the
\nregional administration, results in the companies continuing to
\nenjoy a good standing. They have the power to codetermine the
\nformation of the administration's apparatus in the regency. It is
\nthus not surprising that becoming the All Indonesia Workers Union
\nfunctionary in the cigarette factories is often a closely
\ncontested struggle.<\/p>\n
That is another aspect of the dynamics of the operation of
\ncigarette factories in Kudus and in Kediri, and their involvement
\nin the development process. With their substantial role, and
\ntheir economic position guaranteeing the livelihood of thousands
\nof workers, the cigarette factories exert a strong influence on
\nthe government.<\/p>",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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