Indonesia to Support Tobacco Farmers

Indonesia will allocate 50 percent of its tobacco excise revenue sharing fund to support tobacco industry workers and farmers, reports Antara News, citing a Presidential Staff Office (KSP) statement.

According to the KSP, the effort is necessary to help workers and farmers cope with the impact of global economic uncertainty on Indonesia’s tobacco industry. The assistance will reportedly be offered in the form of fertilizer, machinery and cash.

The Ministry of Finance requires 3 percent of the tobacco excise revenue to be allocated as a profit-sharing fund managed by the producing regional government.

Of the revenue-sharing funds, half must be used to improve the people’s welfare, while the remaining 40 percent will be used for health, and 10 percent for law enforcement.

In December, the government announced it would increase the tobacco product excise rate by 10 percent during 2023–2024. The policy aims to manage cigarette consumption, increase state revenue and monitor illegal cigarettes.