Ministry of Agriculture: Tobacco Products Industry Contributes 300 Trillion Rupiah to the State
JAKARTA — The Ministry of Agriculture (Kementan) has stated that tobacco excise tax (CHT) contributed approximately 300 trillion rupiah to the state in 2025.
Yudi Wahyudi, Head of the Annual Crops Group at the Directorate of Annual Crops under Kementan, declared that the magnitude of this excise revenue demonstrates the significant role of tobacco products in driving national economic growth.
“Approximately 96 percent of this represents a contribution from tobacco excise tax,” Yudi stated during a discussion titled “Maintaining Quality and Sustainability of the Tobacco Products Industry” at Kementan in Jakarta on 26 February 2025.
According to Kementan data, tobacco production in Indonesia reached 300,000 tonnes in 2025, sourced from multiple regions. East Java emerged as the province with the largest cultivation area at 110,000 hectares, producing 146,000 tonnes. Nusa Tenggara Barat subsequently generated 56,000 tonnes of tobacco from 50,000 hectares of cultivated land.
“Thus, East Java, Central Java, and West Java represent key production centres for tobacco in the archipelago,” Yudi explained.
The tobacco agricultural ecosystem involves 571,257 household heads, with each household comprising approximately four individuals. Consequently, at least 2 million people depend on tobacco farming for their livelihoods.
“Therefore, the total number engaged from upstream to downstream in tobacco production reaches nearly 6 million. This demonstrates the considerable and significant impact of tobacco production,” Yudi noted.
During the same forum, Edi Sutopo, Chairman of the Alliance of Indonesian Tobacco Communities (AMTI), stated that the 300 trillion rupiah contribution represented only tobacco excise tax revenues. According to AMTI research conducted in 2022, the multiplier effect from tobacco products reached 710.3 trillion rupiah.
“In 2024, tobacco exports generated 1.8 billion, or 1.85 billion US dollars. In 2025, as of October, exports have already reached 1.9 billion US dollars, indicating a further increase in export revenues,” Yudi added.