AMTI: Tobacco Industry Contributes Rp 300 Trillion to Indonesia, BUMN Rp 80 Trillion

JAKARTA — The Indonesian Tobacco Community Association (AMTI) claims the Tobacco Product Industry (IHT) contributes significantly more revenue to the state than the dividends paid by state-owned enterprises (BUMN).

AMTI Chair Edy Sutopo stated that the IHT generated revenue of up to Rp 200 trillion in 2024, compared to BUMN’s approximately Rp 80 trillion.

“For context, total BUMN revenue in 2024 was only around Rp 80 trillion, which is roughly 37 per cent of the tobacco excise tax alone, not including other taxes,” Edy said during a press conference in Gambir, Jakarta, on Tuesday (10 March 2026).

According to data compiled by the association, the IHT excise tax remitted to the state in that year reached Rp 216.9 trillion.

Beyond excise duties, the IHT still pays regional taxes, corporate income tax, personal income tax, and value-added tax (VAT).

“So including all taxes, it could amount to around Rp 300 trillion. That’s substantial,” he said.

Additionally, the IHT ecosystem from upstream to downstream provides employment for 6 million workers. The tobacco industry contributes Rp 710.3 trillion to gross domestic product (GDP).

“This is part of the people’s economy,” he noted.

However, the IHT’s survival is currently under threat from regulations being prepared by the government. These include implementing regulations for Government Regulation (PP) Number 28 of 2024 on the implementation of Law Number 17 of 2023 on Health.

The implementing regulations are being discussed by the Ministry of Coordinating for Human Development and Culture (Kemenko PMK), which would limit maximum nicotine content to 1 milligram and tar to 10 milligrams per cigarette.

IHT actors also face the prospect of additional restrictions on other substances in cigarettes, such as cloves, which would impact farmers.

Meanwhile, the average natural nicotine content of Indonesian tobacco ranges from 2 to 8 milligrams per cigarette.