Losari, home to hand-rolled 'kretek' cigarettes

The recent take over of Indonesian cigarette maker PT Hanjaya Mandala Sampoerna Tbk by Philip Morris Inc. has gained wide media attention. The media has run many stories on several aspects of the surprising takeover. In this edition The Jakarta Post's Nana Rukmana will look into the local small-scale cigarette industry that continues to survive despite cut-throat competition from large tobacco companies. This is the first of two articles on the subject.

The village of Astanalanggar might not be a familiar name to most people but the Losari regency subdistrict in West Java is well- known locally as the place to go for hand-rolled kretek, or clove cigarettes.

Unlike the biggest cigarette producer in the region, British American Tobacco, which operates a large modern factory out of Cirebon to produce well-known brands like Ardath, Lucky Strike and Commodore, in Losari there is no rattle of modern machinery or the bustle of thousands of workers.

Instead, not more than 30 housewives sit in rows in a small compound, their hands working busily to roll the unfiltered cigarettes.

In Losari, there are no large warehouses for storing tons of high-quality tobacco and cloves. The raw materials are kept in modest storerooms with woven bamboo walls. No modern driers are used either; drying is a process conducted simply by spreading the new cut tobacco on mats outside, in the front yard of residents' houses.

"It doesn't mean that we've neglected the quality of cloves and tobacco needed to make kretek cigarettes. Although we keep them in simple storerooms and dry them naturally in the sun, we monitor the process properly to produce good-quality cigarettes," said Kusen, 68, one of the pioneers small-scale cigarette makers in Losari.

Upon entering the front yard of Kusen's house, the strong and unmistakable aroma of freshly cut tobacco is inescapable. A small group of men tend to the tobacco, their nimble hands turning over the leaves.

"This is to make sure that it dries out evenly and keeps its aroma," said Ratno, 38, one of Kusen's employees.

According to Kusen, at the industry's peak there were 70 small-scale cigarette producers operating in villages throughout Losari, including businesses in Losari Lor, Losari Kidul, Barisan, Pasuruan and Astanalanggar.

However, nowadays only about 20 producers remain, most of them concentrated in Astanalanggar. Those still operating are under the assistance of three larger cigarette producers in Astanalanggar, one of them being Kusen's Subur cigarette company.

The workers who remain work in pabrik, or cottage industries of between five and 25 workers, often from the same extended family. "All the workers here are residents who still have family ties," said Kusen.

The Subur cigarette factory supports nine small-scale producers, six of which are run by Kusen's children.

Among them are Panah Mas, Kharisma, Durian, Sami Djaya, Piala Dunia, Tiga Nangka, Djagung, Sinar Mandiri and Jaya Mandiri. The businesses employ about 200 workers in total.

"Most are housewives who want to make extra money while their husbands work in the fields," Kusen said.

Kusen pays his employees in two ways. Workers who work on a daily basis are paid Rp 15,000 each a day and are provided with two meals. Part-timers are paid based on the number of cigarettes they make, ranging between Rp 15,000 and Rp 25,000 a day, and only get a single meal.

Kusen said he could not determine the exact number of cigarettes produced daily, but said his factory could produce about 100 to 110 bales of cigarettes, with a turnover of Rp 25 million to Rp 30 million on average a day.

"Each bale consists of 200 packs, 12 cigarettes to a pack," he said.

Deni Julianto, 33, manager of the Jaya Mandiri cigarette factory, said that all the supporting factories supplied their products to Subur.

"My factory can produce between five to 10 bales of cigarettes, while the others can make between five to 20 bales a day," he said.