Produksi Cigarette Amblas Usai Excise Naik, Sri Mulyani: Pemerintah Kesawatian

Illustration (Photo: Freepic)

Minister of Finance (Menkeu) Sri Mulyani said that domestic cigarette production had decreased after the government set an excise increase policy at the end of 2022.

According to the Minister of Finance, cigarette production in January 2023 was 15.6 billion cigarettes. That number is less than January 2022, which was 15.8 billion sticks.

Cigarette production fell 1.5 percent. The decline occurred in the production of class 1 factories for all types, both machine kretek cigarettes (SKM), hand kretek cigarettes (SKT) and machine white cigarettes (SPM). This happened because there was indeed an increase in tariffs and indeed the purpose of this excise is to reduce production. So from this side, it has succeeded in fulfilling this goal," he said some time ago.

Although production has collapsed, state revenues have increased.

The state treasurer revealed that the realization of tobacco excise duty last month amounted to IDR 18.4 trillion.

This value has exceeded the January 2022 record of IDR 17.6 trillion.

"Tobacco excise revenue grew 4.9 percent year on year (yoy). This is also influenced by the overflow of revenue from excise stamp orders in November 2022 which was paid in January 2023," he said.

VOI noted that the government increased tobacco excise duty by an average of 10 percent in 2023 and 2024.

As for the type of hand kretek cigarettes (SKT), a maximum of 5 percent is in the context of the sustainability of the workforce in this sector.

In general, state revenues for the excise and customs sector amounted to 24.1 trillion.

This figure is equivalent to 8 percent of the 2023 APBN target which targets a revenue value of IDR 303.2 trillion.