Head of Member ForumAndre SetiawanHead of Fiscal Affairs
Deputy HeadFedausCorporate Regulatory Manager
About the Forum
The Tobacco sector plays an important part in supporting Indonesia’s economic development. As stated in the Plantation Law, tobacco is a national strategic commodity as it is considered to have an important role in the development of social, economic, and environmental conditions in Indonesia (together with cocoa, coffee, rubber, tea, and palm oil).
Tobacco is a labour-intensive sector, employing six million people directly and indirectly throughout its value chain, from tobacco and clove farmers, employees of manufacturers, to retailers.
The sector is also one of the biggest and reliable contributors to the state revenue, with a value of IDR 137.9 trillion in 2016 through excise taxes. In the past five years, it has contributed around 10% of all government tax earnings – 4 to10 times higher than in other countries in the world.
Indonesia has been a net exporter of tobacco products, with the sector adding more than US$ 500 million to the state’s revenue on top of its excise contribution. The country is also listed as the world’s second largest producer-exporter of manufactured tobacco products, surpassing Korea, Russia, China, and the US.
The Tobacco sector still faces a number of key issues in some regulations and policies. The Member Forum, consisting of 3 (three) leading tobacco companies in Indonesia, has conducted several meetings in 2017 to continue advocating the sector and to discuss the economic impact of the Tobacco industry with key business players.
The Tobacco Member Forum is currently monitoring and working on several ongoing issues, including:
- Regulatory Consistency on Tobacco Control.
- Tobacco Excise Roadmap.
- Tobacco Export/Import Policy.
- Innovation of reduced risk products in the Tobacco sector.