According to Bisnis reported on January 3, the tobacco products industry in Jakarta, Indonesia is facing major challenges. Massive layoffs in the industry may be triggered by multiple pressures from increased taxes on Indonesia's tobacco industry, taxes on e-cigarettes, and the health bill (RPP Kesehatan) policy that classifies tobacco as an addictive substance. This impact is not limited to the tobacco products industry, but will also affect many related industries, including tobacco, retail and creative industries.
Garindra Kartasasmita, secretary-general of the Indonesian Personal Atomizer Association (APVI), said that due to the increase in tobacco taxes, the production of the tobacco product industry will drop by 10% in 2023. Therefore, APVI has to consider employee restructuring and partnerships with the advertising industry. of cuts.
According to 2021 data from the Indonesian Ministry of Tourism and Creative Economy, the creative industry employs more than 725,000 workers, and a further 19.1 million workers are employed in multiple sectors. As a result of this move, this means that the income earned by the creative industries will be reduced by 9-10%, with a consequent reduction in labor absorption of 10%.
