Dark Cloud Hangs Over Indonesia’s Tobacco Industry

Dark Cloud Hangs Over Indonesia’s Tobacco Industry

Indonesia’s tobacco industry struggles with declining sales, layoffs, and falling farmer demand—calls grow for a 3-year excise tax moratorium.

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Kamis, 19 Juni 2025 | 18:52

Bisnis.com, JAKARTA — The tobacco industry is facing a looming threat of mass layoffs as cigarette production continues declining. In response, tobacco businesses are requesting a three-year pause for cigarette excise taxes to allow the industry to recover. 

Sudarto A.S., chairman of the Federation of Tobacco, Food and Beverage Workers Unions of Indonesia (FSP RTMM SPSI), said workers in the sector are growing concerned about the possibility of mass layoffs due to rising production costs.

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