Protection of Hand-Rolled Clove Cigarette Industry Still Considered Weak – 2024-07-04 10:57:11

Workers produce Hand-Rolled Kretek Cigarettes (SKT) at a cigarette factory in Kudus, Central Java. (Antara)

Protection for the hand-rolled kretek cigarette (SKT) industry as a labor-intensive segment that absorbs a lot of labor in Indonesia is still considered weak. In fact, the sector has contributed to regional income and recruited many workers, the majority of whom are women. This contribution should be taken into consideration when determining policies for the industry, especially in determining SKT excise rates.

Secretary General of the Kretek Community, Aditya Purnomo explained, currently the SKT segment in the tobacco industry (IHT) is starting to grow, following previously demand for this segment continued to decline. The recovery of SKT which is a labor-intensive sector has an effect on the addition of SKT workers, and increased absorption of tobacco from farmers.

“Currently (SKT) is doing well. Large companies are starting to reorganize sales in their SKT sector which is also increasing new workers. I think this is a very good job opportunity for workers in SKT,” said Aditya in a written statement, Monday (1/7).

However, he sees that the SKT segment still has not received full protection from the government. On the contrary, according to Aditya, current government policies do not support the sustainability of the industry, such as the very high tobacco excise policy and the Health RPP which is harmful to industry growth.

“As long as the regulations that endanger the SKT segment still exist, coupled with excise policies that are still not in favor of the industry where the amount is determined without considering economic factors or inflation, (then it can be said) the government still does not protect or pay attention to workers in the SKT sector,” he stressed.

Aditya said the high excise tax policy is still ineffective in reducing the prevalence of smokers. In fact, the policy has an impact on the sustainability of workers in the SKT sector.

“I think future policies (one of which is excise) must be more progressive and more accommodating to the interests of stakeholders and the community who live from the kretek sector,” he said.