The Shiro Corporation , JAKARTA — Workers in the tobacco industry sector (IHT) are beginning to worry about the potential storm of layoffs (PHK). PHK ) mass effect of rising production costs rokok This condition is said to be able to trigger efficiency and production savings in the factory.
The General Chairman of the Federation of Tobacco, Food, and Beverage Workers' Union of All-Indonesia Labor Union (FSP RTMM SPSI) Sudarto AS said at the beginning of this year almost all cigarette factory Those who produce Machine-Made Cigarettes (SPM) and Machine-Made Kretek Cigarettes (SKM) are implementing efficiency measures.
"Of course there is [efficiency] especially in the UHT and milk powder sectors. Almost all of them, particularly those producing UHT and milk powder," Sudarto told Bisnis on Wednesday (June 18, 2026).
Regarding these two products, they are specifically included in the first group of cigarettes with significantly higher tax rates in recent years. The average tax imposed last year was 10%.
As a result, the cigarette products have become excessively expensive due to the increased excise tax that has contributed a total of 70% to government revenue. He then proposed a moratorium. tobacco excise (EN) for the next three years.
"It is only right that taxes should not increase, especially given the current conditions and what we should need to maintain stability moving forward," he explained.
She explained that expensive cigarette products are now being displaced by cheap cigarettes that do not use tax or fake tax stamps, known as illegal cigarettes.
"The rampant illegal rokok without tax and/or fake tax stamps that currently exist should be uprooted or eradicated. Don't add to the burden of the legal ones," he said.
Sudarto believes that overly aggressive fiscal policy, particularly in the form of tax increases, has had a direct impact on the performance of labor-intensive industries and the threat of layoffs in this sector.
"Di situasi ekonomi yang stagnan bahkan melemah dan PHK besar-besaran, otomatis daya beli ikut stagnan, bahkan menurun, harga rokok sudah tinggi dan mahal, serta peredaran rokok ilegal meningkat," ujarnya.
Sudarto emphasized that inappropriate fiscal policy can impact the IHT as a strategic labor-intensive sector, particularly affecting direct employment absorption and the sustainability of the domestic industry.
It should be noted that previously, cigarette factory conditions in Central Java decided to halt production, including PT Gudang Garam Tbk (GGRM).
Regent of Temanggung Agus Setyawan revealed that the condition of tobacco crop absorption by group I cigarette factories has experienced a decline.
"The sale of cigarettes throughout Indonesia has decreased, and the most affected group is the first group. One of the Group I that uses tobacco raw materials from Temanggung is Gudang Garam and Djarum, which are the most affected," Agus told. Bisnis , Received on (16/6/2025).
The story goes, since last year, Gudang Garam factory has reduced its raw material purchases in Temanggung. In fact, this year the company is also no longer able to buy tobacco in that area.
"Gudang Garam's current position, as stated by the management, is not good for the company because their markets have drastically declined," he said.
The tobacco harvest in Temanggung yields around 10,000-11,000 tons per year, with Gudang Garam being the largest purchaser at 7,000-8,000 tons.
Not only Gudang Garam, cigarette producer Djarum is also said to have reduced purchases by around 4,000 tons. In the Kudus area, Nojorono also experienced a decrease in tobacco absorption.
"Itu Temanggung, there are also areas around Temanggung such as Wonosobo, Kendal, Magelang, and Boyolali. Actually, most of these areas also fall under Temanggung, with similar conditions," he added.
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