Speaking at the Finance Ministry headquarters in Jakarta on Friday, he said he had instructed his aides to oversee the supply chain of illicit cigarettes, particularly those circulating through online platforms.
"We will look into this matter. I will visit East Java to communicate with industry players and ask whether their businesses are in decline. If that is the case, I will take measures to protect their market from excise-free, illegal cigarettes circulating online," Sadewa affirmed.
The minister underlined the importance of safeguarding legal cigarette businesses, noting their significant contribution to state revenue through excise compliance.
"It would be unfair if we levy hundreds of trillions in taxes from cigarettes without ensuring protection for the market. The absence of safeguards equals letting the industry die," he emphasized.
Sadewa further cautioned that the government must exercise prudence in shaping cigarette policies to avoid repercussions in the employment sector.
He cited, for instance, that imposing excessively high excise rates could weaken the industry and ultimately trigger a wave of layoffs.
"As long as we do not have a solution to absorb the laid off, we cannot afford to antagonize the industry," he argued.
While acknowledging that excise hikes aim both to raise revenue and reduce cigar consumption, he stressed that such policies should not undermine workers’ livelihoods.
"It is true that we need to discourage people from smoking, at least by telling them the risks. However, the government should not run policies that harm the cigarette industry while neglecting the employment aspect by withholding intervention," he said.
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Translator: Bayu S, Tegar Nurfitra
Editor: Azis Kurmala
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