Gus Lilur Welcomes Finance Minister Purbaya’s New Excise Tier Plan for Small Cigarette Industry

JAKARTA - The owner of the Nusantara Global Cigarette Factory Group (BARONG Group), HRM Khalilur R Abdullah Sahlawiy or Gus Lilur, appreciates the government's plan to issue a new layer scheme for people's cigarette taxes which is considered more adaptive to the conditions of small and medium industries.

According to Gus Lilur, the steps initiated by the Minister of Finance Purbaya Yudhi Sadewa are a positive signal for the people's cigarette business actors who have been facing heavy pressure due to the tax structure which is considered disproportionate.

"We appreciate and thank the Minister of Finance, Mr. Purbaya, for the plan to issue a new layer of people's cigarette tax. This is a positive step and is eagerly awaited by small business actors," Gus Lilur said in his statement, Monday, May 11.

He assessed that the policy could be a gateway for the growth of a healthier, legal, and competitive people's cigarette industry.

Until now, he said, many small and medium-sized enterprises in the cigarette industry have had difficulty entering the legal channel due to the high cost of taxes and the complexity of the licensing system.

"If this new layer is really realized, then this can be a gateway for the birth of a healthy, legal, and strong people's cigarette industry," he said.

In addition to appreciating the tax policy, Gus Lilur also encouraged the government to accelerate the transformation of illegal cigarette players to enter the legal system.

According to him, the approach of enforcement alone is not enough to solve the problem of illegal cigarettes without being accompanied by a realistic transition path for small business actors.

"The state must open up space for transformation. Illegal cigarette entrepreneurs must be directed to enter the legal track, not just be prosecuted," he said.

He assessed that some illegal cigarette perpetrators actually had a fairly good production and market capacity, but were constrained by the cost of legality and access to permits that were still difficult to reach.

Therefore, Gus Lilur asked that the new tax policy be followed by a clear and measurable transformation program for small business actors.

"If the state wants to suppress illegal cigarettes, then the state must also provide legal channels that small business actors can reach," he said.

On the other hand, Gus Lilur again emphasized the importance of accelerating the realization of the Madura Tobacco Special Economic Zone (KEK) as a long-term solution for the national tobacco industry governance.

According to him, the Madura Tobacco Estate will become a center of integration between farmers, industry, trade, and supervision in a structured ecosystem.

"The end of all this must lead to the Madura Tobacco Factory. There will be integration between farmers, industry, trade, and supervision in one clear system," he said.

He assessed that the existence of KEK not only strengthens the economy of Madura, but also expands the legal cigarette industry and increases state revenues from the tobacco sector.

"If the Madura Tobacco Factory is realized, then Madura will no longer only be a producer of raw materials. Madura will rise in class to become the national tobacco industry center," he said.

Gus Lilur hopes that the government will immediately realize this policy in a concrete manner so that the people's tobacco industry can obtain business certainty and a healthier growth space.

"This is an important momentum. The state must be present not only as a supervisor, but also as a facilitator of people's economic transformation," he concluded.