KSP Calls The Government To Thicken Social Assistance For Farmers And Tobacco Workers

JAKARTA - The Presidential Staff Office (KSP) stated that fifty percent of the proceeds from tobacco excise (DBH CHT) will be allocated to thicken social assistance (bansos) for farmers and laborers in the tobacco industry.

Deputy III of the Presidential Chief of Staff Edy Priyono in a written statement in Jakarta, Saturday, said that the thickening of social assistance was to anticipate the impact of global economic uncertainty on the tobacco industry in Indonesia.

"Village is realized in various programs such as the provision of fertilizer assistance, agricultural machinery for production or post-harvest, and direct cash assistance," said Edy.

The thickening of social assistance is also in accordance with the results of a coordination meeting between the Presidential Staff Office, the Ministry of Finance, the Ministry of Agriculture, the Ministry of Home Affairs, and as many as 77 local governments, both provincial, district and city.

Currently, said Edy, the Directorate General of Fiscal Balance of the Ministry of Finance has issued a letter regarding the use of DBH CHT 2023.

The letter was addressed to the local government receiving the CHT DBH as a planner and implementer of the program.

As a follow-up to the program, said Edy, local governments need to actively socialize social assistance programs for tobacco industry farmers and workers in their respective regions.

He hopes that the tobacco farmer association can also be involved in the social assistance development program through collaboration with their respective local governments.

"So that the program can match the characteristics of each region," he said.

In accordance with the mandate of the Minister of Finance Regulation Number 215 of 2021, three percent of excise revenues from tobacco products are allocated as profit-sharing funds managed by the producing local government.

From these profit-sharing funds, as much as 50 percent must be used to improve people's welfare.

The remaining 40 percent is for health, and 10 for law enforcement.

"So the policy of increasing tobacco excise rates must also have an impact on the welfare of farmers and workers," said Edy.

The government has previously decided to increase the CHT rate by 10 percent in 2023-2024.

The policy considers various aspects, namely controlling cigarette consumption, labor welfare, state revenue, and monitoring illegal cigarettes.