According to a report by Bisnis on January 3, the Indonesian Personal Atomizer Association (APVI) stated that it is currently seeking opportunities to expand the export market to cope with the pressure of a 15% tobacco tax increase and a 10% consumption tax on e-cigarettes. So far, in addition to Apart from exporting to several Asian countries, they are still mainly focused on the domestic market.
The same situation was confirmed by the Indonesian White Cigarette Producers Association (Gaprindo), whose chairman said that in this situation, business players do not have many strategic options that can be implemented. Therefore, increasing export strategies is still the main option, especially for machine-made white cigarette manufacturers (Special Purpose Machine).
According to data from the Indonesian Ministry of Industry (Kemenperin), Indonesian tobacco product exports will grow by 17.26% by the end of 2023. Industry Minister Putu Juli Ardika said.
“Most of the high growth is e-cigarette products, so we mainly export to several countries including the United States.” At the same time, he is still confident in the development of tobacco product exports. In fact, the industrial confidence index for processing tobacco products ( IKI) growth rate surged from 50.79 in November 2023 to 57.64 in December 2023.