Tobacco Production Takes a Hit as Amid High Excise Tax, Illicit Cigarette Trade

Bisnis.com, JAKARTA — Cigarette producers are again calling on the government to pause tobacco excise tax hikes as nationwide cigarette production and sales continue to slump, which the industry attributes to high tax rates and further exacerbated by rampant circulation of illicit cigarettes.

Major players dominating the market, such as PT HM Sampoerna (HMSP), PT Gudang Garam (GGRM), and the Djarum Group, reported a decline in production through the first half of the year.