JAKARTA - The tobacco processing industry is the industry's sub-sector with the highest expansionary level based on the release of the industrial confidence index (IKI) in October 2015. IKI released by the Ministry of Industry (Kemenperin) shows an increase to 53.50 or higher than September which amounted to 53.02.
Spokesperson for the Ministry of Industry Febri Hendri Antoni Arief suspects that the positive performance of the sector is partly due to the policy of the Minister of Finance (Menkeu) Purbaya Yudhi Sadive. Purbaya has decided not to increase the excise tariff on tobacco products (CHT) next year.
Apart from that, Febri explained, the supply of tobacco from farmers is quite large because it has entered the harvest period. This actually has more effect on the performance of the tobacco processing industry.
"This tobacco processing industry is a seasonal industry. Seasonal depends on the tobacco harvest period. When tobacco farmers harvest a lot, the industry follows with improved performance. And currently the tobacco processing industry is performing well again," said Febri in the release of IKI October 2025 at the Ministry of Industry Building, Jakarta, Thursday, October 30.
"Because it is a material factor, the supply of tobacco from farmers is quite a lot. And that is coupled with the effect of Pak Purbaya's statement stating that he will not increase tobacco excise," he continued.
In addition, Purbaya's actions to eradicate the circulation of illegal cigarettes have also become a positive signal for the industry. In early October, the State Treasurer made a working visit to Surabaya to destroy 235 million illegal cigarettes.
"And maybe his visit to East Java is also related to illegal cigarettes," he concluded.
Previously, Minister of Finance Purbaya emphasized that cigarette excise rates had not increased and so far there has been no discussion regarding policies to increase retail selling prices (HJE).
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"(The increase in retail selling prices) there is no such policy, I don't know," he told the media crew on the 79th Customs Day, Monday, October 13.
Purbaya assessed that the policy of raising HJE was not the right step and there should have been no need for an increase.
"It should be, really, you don't have to. If not, right, trick. You think I'm a kipul. It doesn't go up, but the price is the same, right," he explained.
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