Ministry Of Industry Appreciates Gudang Garam Cigarette Producer Owned By Conglomerate Susilo Wonowidjojo For Optimizing Local Tobacco Absorption

Illustration. (Photo: Doc. Antara)

JAKARTA - The Ministry of Industry (Kemenperin) seeks to accelerate the absorption of tobacco as a raw material for the tobacco products industry (IHT) in order to maintain industrial productivity and improve the welfare of its farmers.

"A few days ago, we together with members of Commission IV of the DPR RI and the Regent of Temanggung made a working visit in order to directly observe the absorption of tobacco in warehouses owned by PT Gudang Garam and PT Djarum in Temanggung as well as discussing with tobacco farmers," said Acting Director General of Agro Industry. The Ministry of Industry, Putu Juli Ardika, quoted from Antara, Monday, September 20.

After seeing firsthand the tobacco absorption process in the warehouse owned by PT Gudang Garam, owned by conglomerate Susilo Wonowidjojo and PT Djarum, owned by the tycoon Hartono Brothers in Temanggung, his party gave appreciation to the two IHT companies that have made maximum efforts to absorb tobacco from local farmers.

"We also appreciate these two companies who have purchased local farmers' tobacco at good prices. However, we continue to ask the IHT sector to further increase the purchase price and absorption of local tobacco in line with the current harvest season," said Putu.

He explained that tobacco is a plant that is used as a raw material for products from the IHT sector such as kretek cigarettes, white cigarettes, cigars, klobot, sliced tobacco, snuf, cigars to as raw material for sticks and liquid electric cigarettes.

"The status of tobacco land exploitation is dominated by smallholder plantations at 99.96 percent, the rest are large private plantations and large state plantations," he said.

Tobacco plantations are spread in almost all parts of Indonesia. There are four provinces that have the largest population of tobacco plants, namely East Java, Central Java, West Java, and West Nusa Tenggara.

"The role of tobacco farmers in cultivating and processing tobacco plants to become industrial raw materials will determine the quality of the cigarette products produced," he said.

In order to anticipate the obstacles to local tobacco absorption during the harvest season, Putu and his staff conducted an assessment in the field to identify the problems that occurred and find the right solution in the future.

"We are also trying to bridge the gap between industry players and tobacco farmers so that they can continue to run their business in the midst of the Covid-19 pandemic," he said.

This is to accelerate the absorption of tobacco, increase tobacco prices so that farmers do not suffer losses and ensure quality raw materials for the IHT sector.

"I hope that before the rainy season arrives, the tobacco in the farmers will be absorbed, of course at a good price. Because I am worried that if the rainy season arrives and the tobacco is not fully absorbed, the quality of the tobacco will decrease which will impact the price of tobacco, too. " said Putu.

The Ministry of Industry also continues to coordinate with several relevant stakeholders, including the Directorate General of Foreign Trade of the Ministry of Trade, the Commodity Futures Trading Supervisory Agency (CoFTRA), the Directorate General of Customs and Excise, local governments and IHT business actors to find alternative medium and long term solutions to overcome the problem of tobacco absorption that occurs every year at the time of the tobacco harvest.

"In the future, it is hoped that the resulting solution can anticipate the occurrence of turmoil from farmers which has been repeated every year," said Putu.