The Indonesian Tobacco Industry (IHT) is demonstrating robust operational resilience and significant expansion, highlighted by an extraordinary surge in production volume. Preliminary figures indicate that national cigarette production witnessed a dramatic 73% year-on-year increase in October. This substantial jump in output signals that the industry is aggressively utilizing its capacity and capitalizing on recovering market demand. Such high growth is crucial for supporting downstream economic activities and maintaining high employment levels within the sector, reinforcing the IHT’s critical role as a major contributor to state revenue and the overall economy.

This period of intensified production activity is likely influenced by strategic inventory management and the market responding to recent regulatory stability, particularly concerning excise tax policies. Industry stakeholders view this rapid expansion as a critical indicator of renewed business confidence and strong domestic consumption. Moving forward, the industry association emphasizes the need for continued supportive policies—including predictable excise structures and robust measures against illegal cigarettes—to ensure that this recent expansion translates into sustainable, long-term growth and stable employment across the entire tobacco and clove farming value chain.

Source:
https://tanimerdeka.com/industri-tembakau-ekspansi-produksi-rokok-oktober-naik-73-persen/