Indonesia’s white cigarette manufacturers are increasingly turning to exports to sustain operations as domestic demand softens under the weight of excise hikes and weakened purchasing power, industry officials say. According to Benny Wachjudi, chairman of the Indonesian White Cigarette Entrepreneurs Association (Gaprindo), many domestic consumers are shifting to cheaper illicit products, forcing legal producers to allocate up to 30% of output for export to keep machines running and avoid layoffs. Despite regulatory risks abroad, cigarette exports rose more than 20% in the past three years, reaching $1.9 billion in 2024, Gaprindo said.
Indonesia ranks as the world’s fourth-largest tobacco exporter with a 6.08% global share, driven largely by sales to ASEAN markets led by the Philippines, according to the Indonesia Business Post. Deputy Industry Minister Faisol Riza stressed that exports are vital for sustaining nearly 6 million domestic jobs and maintaining foreign exchange contributions.