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Jakarta Post

Tobacco industry up in arms over ‘excessive’ excise hike

  • Made Anthony Iswara and Suherdjoko

    The Jakarta Post

Jakarta/Semarang, Central Java   /   Sat, September 21 2019   /  02:12 am

Cigarette companies and tobacco farmer associations are swinging into action to protest the government’s plan to raise the tobacco excise to a decade high in 2020 to increase state income and discourage smoking.Cigarette Producers Association (Gappri) chairman Henry Najoan expressed disappointment on Wednesday over the failure of the government to consult with factory owners before deciding on the 23 percent excise hike.He said the increase was “excessive” in comparison to the yearly average increase of 10 percent. The Association of Cigarette Employers regional chairmen in West Java’s Surabaya and Central Java’s Malang echoed Henry’s dismay.The cigarette excise was increased by 10.04 percent in 2018, 10.5 percent in 2017, 11.3 percent in 2016 and 8.7 percent in 2015, according to Statistics Indonesia.“If you want to kill [the tobacco] industry, is there already a replaceme...