Cigarette Excise Rise Up, Industry Minister Asks Employers to Apply Automation Production

INDUSTRY.co.id - Jakarta - Government has officially raised the tariff of cigarette tax by 10 percent in 2018. the increase in excise duty will certainly affect the industry.

Minister of Industry, Airlangga Hartarto said the Ministry of Industry will continue to encourage entrepreneurs to apply automation in the production process, in order to keep the industry growing.

"Only by doing automation, the industry can survive in the middle of the onslaught of excise increase," said Airlangga in Jakarta (24/10/2017).

Airlangga view, increase cigarette taxes always have two sides. In terms of revenue, high taxes are seen as positive for increasing state revenues. However, on the other hand, the increase in excise duty will hamper the cigarette industry to grow.

"The industrial downturn will ultimately also affect the reduced income of tobacco farmers," he added.

Therefore, Airlangga view, the solution that can be taken by the industry following the increase in excise duty is to do the automation. With automation, production costs can be reduced to become more efficient. "So it tends to be the choice if the tax is raised then the automation will increase." bright Airlangga.

Meanwhile, for farmers, Airlangga thinks there needs to be coaching so that they can get more value from every harvested tobacco.