Clove Farmers Warn of Threat of Price Collapse Over Tobacco Regulation

Jakarta, CNBC Indonesia - Proposed restrictions on nicotine and tar content in cigarette products have sparked concerns among clove farmers, who fear the new policy could suppress the kretek industry, which has historically been the primary market for Indonesia’s clove commodity.

Ketut Budhyman Mudara, General Secretary of the Indonesian Clove Farmers Association (APCI), stated that the kretek industry is the main absorber of Indonesia’s clove production.

“National clove production amounts to approximately 120,000 to 140,000 tonnes each year, and nearly all of it is absorbed by the kretek cigarette industry,” Ketut said during a press conference in Jakarta on Tuesday, 10 March 2026.

Should kretek cigarette production decline as a result of the new policy, clove farmers would immediately feel the impact.

“If this restriction on tar and nicotine levels is implemented, then cigarette production could fall, and that would threaten the livelihoods of clove farmers,” he said.

Ketut reminded that the kretek industry has a long history in Indonesia’s economic development. He even referenced the origins of the industry, which stemmed from local innovation.

“In its history, kretek was discovered by Haji Jamhari in Kudus during the 19th century when he experimented by mixing tobacco and cloves,” Ketut said.

The discovery subsequently evolved into a major industry providing broad economic benefits. Moreover, cloves are an indigenous Indonesian plant with strategic value for the national economy. He expressed concern that overly strict regulations could cause the local commodity to lose its domestic market.

“If this regulation is enforced, then cloves, which are the primary ingredient in kretek, could lose their market,” he said.

He also hoped that the government would consider the condition of farmers before implementing new policies in the tobacco sector.

“We hope the government will be more prudent in making regulations so that clove farmers throughout Indonesia are not harmed,” he said.