Jakarta - The Indonesian Chamber of Commerce and Industry (Kadin) organized a public discussion titled “One Year: Hopes for Deregulation and the Future of the Tobacco Industry” at the Kadin Tower, South Jakarta, on Tuesday (21/10/2025).

Saleh Husin, Kadin Indonesia’s Deputy Chair for Industrial Affairs, highlighted the significant role of the tobacco industry in recent years. Beyond contributing to state revenue through excise, the tobacco sector also supports employment.

“Directly or indirectly, nearly six million workers are involved,” Saleh said.

Saleh noted that tobacco excise revenue reached a record high in 2024, amounting to IDR 216.9 trillion—far exceeding state-owned enterprises’ dividend payments to the government, which totaled IDR 85.5 trillion.

In addition to excise revenue, the tobacco industry also contributes to foreign exchange. Export earnings rose from approximately USD 600 million in 2020 to USD 1.8 billion in 2024, an increase of nearly 94%.

Despite generating substantial revenue, the tobacco industry faces challenges from illegal cigarettes. While the number of enforcement actions has declined by 11.3%, the quantity of illegal cigarettes seized increased by 37%, reaching 816 million sticks by September 2025, compared to 596 million sticks in the same period in 2024.

“This remains a key focus for Minister of Finance Mr. Purbaya and his team, to enhance supervision of the tobacco industry,” Saleh emphasized.

Meanwhile, Deputy Minister of Industry Faisol Riza stressed the importance of sustaining the labor-intensive tobacco sector.

“The tobacco industry has long been part of our tradition. Even though it is sometimes called a sunset industry, we remain committed to ensuring workers can maintain their livelihoods and gain new skills for the future,” Faisol said.

He added that around six million workers currently depend on this sector, highlighting the need for continued attention to workforce sustainability.