The tobacco products industry (IHT) is one of the industries that contributes greatly to the country's economy. In 2021, state revenues from excise on tobacco products or excise on cigarettes will reach IDR 188.81 trillion. But behind its large contribution, there are regulations that hinder the tobacco ecosystem. One of them is the regulation related to cigarette excise. Public policy observer Henry Thomas Simarmata explained that the tobacco excise tax policy was based on the government's enthusiasm to capture the economic movement of the tobacco sector. "The initial enthusiasm was like that, but the regulation of excise on tobacco products has always been a polemic because of the inconsistency between the government and the conditions experienced in the tobacco sector," Henry said in a written statement in Jakarta, Saturday (17/9/2022). According to Henry, this discrepancy occurs because there is a process that is repeatedly abandoned by the government, namely the involvement and provision of input from the tobacco products industry chain to the tobacco product excise policy. “In making excise policy, there should be negotiations between farmer groups and consumers to the government. Because it is a basic principle of public policy that has an impact on the wider community, especially the tobacco sector,” he said. Henry also revealed that there is great international pressure regarding tobacco sector policies in Indonesia. One of them is through the Framework Convention on Tobacco Control (FCTC). “In international forums, Indonesia always gets the spotlight on tobacco policy. To fight this, Indonesia must have a comprehensive study related to our interest in tobacco," said Henry.
Meanwhile, Deputy Dean 3 of the Faculty of Adab and Humanities, Usep Abdul Matin, said that tobacco has important values in various aspects, ranging from economic, social to cultural. So it is important for students to study. “I really appreciate this discussion activity. Campuses in the spirit of an independent campus and independent learning must indeed study various knowledge, including issues related to tobacco, "he said. The discussion started with a discussion on the history of excise on tobacco products in Indonesia, which was presented by social media activist and history lover, Mazzini. He explained that excise on tobacco products has been applied in Indonesia since the era of the Dutch East Indies, precisely in 1935 through Staatsblad number 517. “Previously there were no excise regulations, tobacco was only an export trade commodity. But as the home-based tobacco processing industry grew, the colonial government only realized that there was economic potential in the country,” said Mazzini. However, according to Mazzini, throughout the history of the cigarette excise policy, there has never been a side to consumers, starting from the colonial era to its current adjustment. "Since the past, excise policy has never taken sides with consumers, and has always been an obstacle for the tobacco products industry," said Mazzini. The government is planning to increase the excise on tobacco products (CHT) in 2023. This is considered a threat to the progress of Indonesia's economic recovery. The Central Java Regional House of Representatives (DPRD) urges the central government not to increase excise rates on tobacco products (CHT), especially the labor-intensive hand-rolled kretek (SKT) segment for 2023. The increase in excise taxes is expected to have a direct impact on the fate of SKT workers and farmers tobacco in Central Java. Deputy Chairman of the Central Java DPRD, Ferry Wawan Cahyono, emphasized that the country's fiscal needs are indeed increasing. However, the central government must also understand that tobacco is processed by farmers, becomes a livelihood for farmers, and becomes a job for people involved in the cigarette industry. The Golkar politician hopes that the government will help maintain the economy of small communities. Moreover, currently, a number of regions, including Central Java, are still in the economic recovery phase. "This must be maintained. Do not let the increase in cigarette excise tax burden so that it hits the lives of small people. If the SKT excise tax is increased, it will be the workers who will be affected," said Ferry, Wednesday (14/9/2022). According to him, the government should pay attention to these factors. “If it can be postponed, it will be postponed, because this concerns small communities. Central Java has a lot of tobacco farmers, one of the biggest tobacco barns," he said. Ferry advised that the government needs to be wise in responding to the plan to increase CHT, especially SKT. Do not let the increase in excise hit the people themselves, because it will certainly disrupt the economic recovery that is currently underway. The same thing was said by a member of the Central Java DPRD, Riyono. According to him, as many as 80% of the main drivers of the Indonesian economy are informal workers, formal workers at the lowest grade, and small industries. One of them is the hand-rolled cigarette or SKT industry, where the workers are dominated by women. Riyono also urged the government not to increase the CHT. Indeed, the country is currently in need of revenue, but it would be unwise for the government to increase the excise tax that burdens small workers.
