JAKARTA - There are concerns that the government's plan to increase the excise rates and retail selling price of tobacco products next year will affect the sales of hand-rolled clove cigarettes (SKT). This was stated by Mindaugas Trumpaitis, President Director of PT HM Sampoerna Tbk (HMSP) in Jakarta, Monday (21/9).
According to him, the tobacco industry is one of the sectors that has been hit hard by the COVID-19 pandemic.
He said the condition had reduced people's purchasing power and cigarette sales. "We hope there will be a new policy for the SKT segment," he said.
He said that round 70% of workers in the tobacco industry came from the SKT segment. For example, to produce 1 billion of SKT cigarettes, 2,700 workers are needed. Meanwhile, to produce 1 billion machine-rolled cigarettes, only 21 workers are needed. (LK/AR)