{
    "success": true,
    "data": {
        "id": 1602988,
        "msgid": "tobacco-association-reveals-thousands-of-cigarette-factories-shutting-down-1773157948",
        "date": "2026-03-10 22:31:23",
        "title": "Tobacco Association Reveals Thousands of Cigarette Factories Shutting Down",
        "author": "Erlangga Djumena",
        "source": "KOMPAS",
        "tags": "",
        "topic": "Regulation",
        "summary": "Indonesia's tobacco industry is experiencing severe contraction, with only 1,700 factories remaining compared to nearly 5,000 units previously, as production declines by an average of 2.4 per cent annually. The Indonesian Tobacco Society Association blames government regulations, including limits on nicotine content (1 milligramme) and tar (10 milligrammes) that are incompatible with locally grown tobacco characteristics, which naturally contain between 2-8 per cent nicotine. Despite contributing approximately 710.3 trillion rupiah to GDP and generating 1.85-1.9 billion US dollars in foreign exchange annually, the industry warns that pending ministerial regulations threaten its viability.",
        "content": "<p>JAKARTA \u2014 The Indonesian Tobacco Society Association (AMTI) has\nrevealed that thousands of tobacco factories have shut down over recent\nyears.<\/p>\n<p>AMTI Chairman Edy Sutopo stated that the number of domestic cigarette\nfactories previously approached 5,000 units.<\/p>\n<p>\u201cCurrently, only 1,700 companies remain. Most of these are\nsmall-scale operations. Even several large industries are already\nstruggling with difficulties,\u201d Edy said during a press conference in\nGambir, Jakarta, on Tuesday (10 March 2026).<\/p>\n<p>Cigarette production records show an average annual decline of 2.4\nper cent.<\/p>\n<p>Edy stated that under Indonesian law, cigarettes remain a legal\ncommodity subject to consumption control measures. However, tobacco\nfarming and producer associations are complaining about government\npolicies that could cripple the tobacco industry.<\/p>\n<p>Among these policies is Government Regulation (PP) Number 28 of 2024\non the implementation of Law Number 17 of 2023 on Health, which is\nviewed as threatening to the Tobacco Products Industry (IHT).<\/p>\n<p>The government is also preparing a Ministerial Regulation from the\nCoordinator Ministry for Human Development and Culture (Permenko PMK)\nthat threatens the IHT.<\/p>\n<p>This regulation would limit nicotine content in cigarettes to a\nmaximum of 1 milligramme and tar to 10 milligrammes per stick, which\ndoes not align with the characteristics of local tobacco.<\/p>\n<p>\u201cWhy? Because by nature, the nicotine content of our tobacco is\nbetween 2 to 8 per cent. Meanwhile, tobacco from abroad contains only 1\nto 1.5 per cent. So it will be extremely difficult to meet these\nstandards,\u201d Edy explained.<\/p>\n<p>Furthermore, Edy stated that the IHT\u2019s contribution from upstream to\ndownstream sectors to Gross Domestic Product (GDP) reaches 710.3\ntrillion rupiah.<\/p>\n<p>AMTI noted that the IHT contributed 1.85 billion US dollars in\nforeign exchange in 2024 and 1.9 billion US dollars during the 11 months\nof 2025.<\/p>\n<p>\u201cIf we look at 2024 data, this amounts to 216.9 trillion rupiah, and\nthis does not yet include taxes. There are regional taxes, corporate\nincome taxes, personal income taxes, and value-added taxes,\u201d Edy\nsaid.<\/p>\n<p>\u201cSo including all taxes, it could reach approximately 300 trillion\nrupiah,\u201d he added.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/tobacco-association-reveals-thousands-of-cigarette-factories-shutting-down-1773157948",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}