IHT Contributes IDR 216.9 Trillion To The Indonesian Economy, Absorbs 5.9 Million Workers

JAKARTA - The Ministry of Industry (Kemenperin) noted that the tobacco products industry (IHT) contributed IDR 216.9 trillion to the national economy throughout 2024. This sector was also able to absorb up to 5.9 million workers.

"IHT is an industrial sector that plays a very important role in the national economy. Its excise contribution in 2024 reached IDR 216.9 trillion, absorbing approximately 5.9 million workers," said Deputy Minister of Industry (Wamenperin) Faisol Riza in a media discussion entitled "Quao Vadis for the Protection of Tobacco Products Industry" in Jakarta, Monday, September 29.

Faisol assessed that the contribution from cigarette excise was much higher than the contribution contributed by SOEs.

"When compared to donations from SOEs to countries other than taxes, it is far behind it. Even if it was forced some time ago before Pak Prabowo's administration, BUMN with all its strength of around Rp. 300 trillion could no longer work optimally in the following year after everything was donated to the state," he said.

"This cigarette company is arguably our original industry in Indonesia, which contributes more than IDR 216 trillion to the country, this has also decreased from previous years," he continued.

In addition to contributing to state revenues and employment absorption, said Faisol, the IHT sector also contributes foreign exchange through exports.

According to him, Indonesia's IHT exports are quite diverse. Faisol explained, there are even some white labels. "Because they asked to be prepared by one or two countries, but by the country where our export destinations want to be exported again to the next destination country," explained Faisol.

It was recorded that throughout 2024, the export value of tobacco products reached 1.85 billion US dollars. "Increased by 21.71 percent compared to the export value in 2023 of IDR 1.52 billion US dollars," he concluded.