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Indonesia Sees Decline in Number of Cigarette Factories

By Maria SantosIndonesia
1 min read
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The Director General of Customs and Excise for the Finance Ministry, Heru Pambudi said the number of cigarette factories in Indonesia continues to fall significantly over the past years. There were 4,669 cigarette factories in 2007, which had fell to 754 by 2016

According to Heru, the better tobacco control measures taken by the Directorate General of Customs and Excise has resulted in the decline of cigarette factories. “Both through administrative and physical control [measures],” he said in a written statement Wednesday, September 28, 2016.

Heru said the Directorate General of Customs and Excise has been taking rigorous approach to issuing permit to manufacture tobacco products. In addition, the Directorate General had shut down the non-compliance factories. “Non-compliant factories will be closed,” he said, adding that the measure will be continued.

The measure, according to Heru, aims to improve compliance of cigarette factories, as well as to supress illicit tobacco trade, which is one of the directorate’s remit which include monitoring tobacco distribution.

Indonesian Cigarette Manufacturers Association (GAPPRI) chairman Ismanu said strict tobacco control policies by the Directorate General of Customs and Excise have been adequate, “GAPPRI fully supports the measures taken by the government in developing tobacco industry,” he said.

Questions & Answers

Q.

What was the scale of the decline in cigarette factories in Indonesia?

A.

The number of cigarette factories in Indonesia fell significantly from 4,669 in 2007 to 754 by 2016. This represents a substantial reduction over the nine-year period.

Q.

Which government department is responsible for the decline in cigarette factories?

A.

The Directorate General of Customs and Excise, under the Finance Ministry, is responsible for the decline. They implemented better tobacco control measures through both administrative and physical controls.

Q.

What specific actions did the Directorate General take to reduce the number of factories?

A.

The Directorate General adopted a rigorous approach to issuing manufacturing permits for tobacco products. They also shut down factories found to be non-compliant with regulations, indicating a strict enforcement policy.

Q.

Does the Indonesian Cigarette Manufacturers Association support these government measures?

A.

Yes, the chairman of the Indonesian Cigarette Manufacturers Association (GAPPRI), Ismanu, stated that the association fully supports the measures taken by the government in developing the tobacco industry.

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