House Member Urges Affirmative Excise Policy for Small Cigarette Manufacturers

A member of Commission XI of the House of Representatives (DPR), Said Abdullah, has urged the government to recognise the diverse nature of the national tobacco industry, especially the small and medium-scale cigarette manufacturers spread across the regions. He argued that simplifying excise tariffs, particularly for Golongan III producers, could potentially burden business continuity and trigger a rise in illegal cigarette circulation. Said cited the cigarette industry in Madura as an example, which is dominated by Golongan III factories with varying product types and production capacities. “We must be able to understand the character and pattern of the cigarette industry in the country,” he said in a statement to the media in Jakarta on Sunday (22/6/2026). He noted that the cigarette industry, especially in Madura, has many tiers and is mostly in Golongan III, with diverse products and differing production scales. “If the excise tariff groups are overly simplified, particularly in Golongan III, it will create difficulties for small and medium-scale cigarette producers,” Said stated. The chairman of the DPR’s Budget Committee assessed that in the current economic situation, which has not yet fully recovered, the tobacco industry plays a crucial role as a contributor to state revenue from excise and as a major employer. He pointed out that in Madura alone, the tobacco industry directly employs more than 186,000 workers, not including indirect employment and the economic impact on downstream sectors. “Considering this, it is only appropriate that Golongan III excise tariffs be given an affirmative policy,” he said. According to Said, an affirmative policy is necessary so that Golongan III manufacturers with diverse products and production capacities can continue to operate legally.