Cigarette Industry slumped, from 600 Only 100 Factories that operate

INDUSTRY.co.id - Jakarta - National cigarette industry is getting worse. The number of obstacles related to the rules and restrictions of cigarette areas make many domestic cigarette manufacturers out of business. The Association of Indonesian Cigarette Manufacturers (GAPPRI) noted that there is a decrease in the number of active cigarette manufacturers in production.

"Manufacturers of cigarettes in Indonesia are licensed as many as 600 factories, but only 100 factories are still actively producing every day," said Chairman of GAPPRI Ismanu Soemiran, Sunday (6/5/2018).

Not producing a number of factories, he added, also affects the absorption of labor in the cigarette production sector.

"The majority of the factories are active, the number of employees is also decreasing, so that of the 600 thousand employees are now the remaining 450 thousand employees," he said.

Separately, Chairman of the Association of White Cigarette Manufacturers Indonesia (Gaprindo) Muhaimin Moeftie explained, the cigarette industry in recent years has decreased sales volume of about 1-2%.

Therefore, if the cigarette excise tariff next year is raised higher than 2018, he is worried the cigarette industry will get worse.

"The possibility (sales volume down) it could happen if circumstances like this," he concluded