The Drop down of 20% cigarette industry and Government's excise tax raise

The cigarette industries are definitely  threatened after being tampered by the campaign to change smoking habit. For two consecutive years, the income of cigarette industries has decreased 30% in 2015 and 20% on going year to year.
The significant drop down of revenue is due to the massive campaign of government to leave smoking and the late policy to increase the retailed price of cigarettes to Rp 50.000 per pack.

The Indonesian association of cigarettes roller partner(MPSI) asked the government to reconsider the plan of excise tax raising since the condition of cigarette industry is so apprehensive. It will bring impact to unemployment of workers which reach thousand employees.

In fact the cigarette industries contribute big taxes and absorb the large number of workers. Especially in east java province which contributes the highest excise taxes Rp 1.43 trillion, 51.25% of total tobacco excise taxes. 

The tobacco company listed the red report of income due to the non compromising campaign and policy of government. PT. Bentoel Internasional Investama for instance noted listed the net loss in the first semester of the year 44.24% from Rp 740.99 billions to Rp 1.32 trillion.