Indonesia's tobacco industry has developed into a deeply rooted and integrated ecosystem since the Dutch colonial era, involving millions from tobacco and clove farmers to cigarette factory workers, street vendors, retailers, and exporters. According to Putu Juli Ardika, Director General of Agro Industry at the Ministry of Industry, the Industry of Tobacco Products (IHT) now plays a crucial role in national economic resilience, with a vast, interconnected structure spanning processing, packaging, and global-scale laboratories.

In 2024, IHT contributed IDR 216 trillion in tobacco excise, making it one of the largest revenue contributors to the state. The sector also provides employment for over 6 million people across its value chain. On the international front, Indonesian tobacco exports reached USD 1.7 billion in 2024, a 21.7% increase year-on-year, ranking the country sixth globally. Despite these achievements, illegal cigarette distribution remains a pressing issue, growing from 3.3% in 2019 to 6.9% in 2023. The government stresses the need for regulation compliance and better oversight. Furthermore, regional governments are encouraged to maximize the use of tobacco excise revenue-sharing funds (DBHCHT) for workforce development, quality testing, and export facilitation. During the Extraordinary National Conference of the Indonesian Tobacco Factory and Farmers Association, Putu called for strategic planning, innovation, and digitization to strengthen IHT as a key partner in national industrial development.

Source:
https://www.niaga.asia/industri-hasil-tembaku-berkontribusi-signfikan-bagi-ekonomi/