Consumption of Hand-rolled Cigarettes Plunges

TEMPO.CO, Jakarta – Susiwijono Moegiarso, the director of Revenue and Customs and Excise Regulations of the Customs Directorate General, said the consumption of hand-rolled cigarettes (SKT) had been declining during the past decade.

“The consumption of Sampoerna Hijau, Di Sam Soe, and Gudang Garam Merah cigarette brands is dropping,” he said at the Coordinating Ministry for the Economy office on Tuesday, May 20, 2014.

He said, however, the Customs Directorate General remained bullish the year’s target of excise revenue could be met despite the recent closure of Sampoerna’s hand-rolled cigarette plants. He added the target of excise revenue this year was pegged at Rp116.28 trillion, with the cigarette industry being projected to contribute Rp110.5 trillion. “I’m certain that we will get Rp111 trillion,” he said.

Susiwijono said Sampoerna’s shutdowns were inevitable. “The downtrend has been afoot in the past ten years,” he said, adding that the consumption of machine-rolled cigarettes (SKM) was rising despite the shrinking SKT consumption. He opined the public’s growing awareness of a healthier lifestyle had caused them to switch from kretek cigarettes to filter and mild ones.

Susiwijono said the loss resulting from the shutdowns would be compensated by the SKM’s increasing revenue. 

MARIA YUNIAR