Indonesian Political, Business & Finance News

FPBM Pushes for SKMT Inclusion in Special Madura Excise Scheme

| Source: VIVA Translated from Indonesian | Regulation
FPBM Pushes for SKMT Inclusion in Special Madura Excise Scheme
Image: VIVA

Pamekasan — The Pamekasan Regency Government held a coordination meeting with cigarette entrepreneurs and regional leadership forum (Forkopimda) members at the Regent’s Official Residence on Friday, 20 February 2026.

The meeting was chaired by Pamekasan Regent Kholilurrahman and attended by Forkopimda officials as well as representatives from the Madura Type C Customs and Excise Supervision and Service Office. The gathering was a follow-up to aspirations raised by the Madura Tobacco Farmers and Local Factory Workers Forum (FPBM) regarding pro-industry excise policies for the local cigarette sector.

A number of officials and business figures were present, including the Head of the Industry and Trade Office, Madura Customs and Excise representatives, local cigarette manufacturers, and tobacco association delegates.

Push for SKMT Under Special Excise Scheme

The central issue discussed was the call for the government to pay special attention to cigarette classification and excise policies, particularly for Madura’s local industry.

Holili, representing both FPBM and the Madura Young Tobacco Entrepreneurs Association (APTMA), stressed the importance of regulations that side with tobacco farmers and local factory workers.

“With the Pamekasan Regency Government’s commitment to follow up on the wishes of Madura’s people, particularly those in Pamekasan, we hope there will be policies more favourable to the local cigarette industry,” he said.

Holili referred to Minister of Finance Regulation No. 192/PMK.010/2021, which defines machine-made clove cigarettes (SKM) as cigarettes blending tobacco and cloves whose production process — from rolling to excise stamp affixing — is wholly or partly carried out by machine.

In general, cigarette classifications in Indonesia comprise: SKT (hand-rolled clove cigarettes), produced and rolled manually; SKM (machine-made clove cigarettes), a blend of tobacco and cloves produced using machines, typically filtered; SPM (machine-made white cigarettes), pure tobacco without clove blending produced by machine; and SKMT (machine-hand clove cigarettes), a hybrid production model proposed to carry a more affordable excise tariff through a Ministry of Finance policy.

At the forum, FPBM also proposed that SKMT be included in a special Madura excise scheme with more competitive pricing. One option presented was an SKMT price of Rp 250 per stick under the special excise scheme, allowing small and medium industries in Madura to remain competitive amid pressure from rising national excise tariffs.

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