House of Representatives member Bambang Soesatyo visited the HS cigarette factory in Magelang, Central Java, stating that Indonesia’s tobacco industry remains a vital pillar of the national economy. Despite rising health awareness and stricter regulations, he emphasized that the sector’s contributions to state revenue and employment are significant. With over six million people involved—from farmers to factory workers and retailers—the industry supports many families across Indonesia. Bamsoet called for balanced, sustainable solutions that address both economic needs and public health.
As Vice Chairman of KADIN, Bamsoet noted that tobacco excise revenue reached over IDR 232 trillion in 2024, covering 9–10% of total state income. These funds support programs like the National Health Insurance (JKN). He warned, however, that a 10% excise hike in 2024 could boost illegal cigarette circulation, risking losses—Customs foiled the smuggling of 600 million illegal cigarettes in 2023, worth IDR 820 billion. He stressed that regulation must be fair and data-driven, not just aimed at controlling consumption but also protecting jobs and small businesses. HS Cigarettes, produced in Magelang by Surya Group, are legal kretek products known for supporting the economy while helping reduce illegal trade.
