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SUKOREJO – The local cigarette industry is facing a tough situation — not only due to regulatory pressure but also because of the rampant circulation of illegal cigarettes in the market.

Chairman of DPK APINDO Pasuruan, Nurul Huda, stated that the cigarette industry is under significant strain this year — both nationally and locally, including in Pasuruan Regency.

Nurul Huda, who also serves as a director at an SKT (hand-rolled kretek cigarette) company in Sumberejo, explained that one of the main factors is the uncontrolled distribution of illegal cigarettes.

“In the market, the circulation of illegal cigarettes has even reached around 30 percent. This has dealt a heavy blow to the legal cigarette industry,” he said.

The legal cigarette industry, he added, employs a substantial number of workers. Tens of thousands of people depend on jobs in cigarette factories for their livelihoods. In Pasuruan Regency alone, there are around 140 cigarette factories.

“We hope the newly appointed Minister of Finance will review the cigarette excise rates, especially for hand-rolled kretek cigarettes (SKT), which are labor-intensive industries. We also urge the government to step up efforts to combat illegal cigarettes, as they not only harm state revenue but also threaten legal industries,” he stressed.

He further expressed hope for a greater price gap between machine-rolled kretek cigarettes (SKM) and SKT, so that the labor-intensive sector can survive.

“Specifically in Pasuruan, we hope next year’s minimum wage (UMK) will not increase too sharply and that business permits will be made easier, considering that Pasuruan’s unemployment rate remains above the provincial average,” he concluded.

Source: radarbromo.jawapos.com