TEMPO.CO, Jakarta - The Customs and Excise of Kudus, Central Java, on Monday announced that the number of cigarette factories in the region’s area of Pati and Jepara have continued to grow despite the COVID-19 pandemic.

Citing Antaranews, the Jepara regency's licensing department has handled many permits. As of the number, there were initially roughly 80 cigarette factories and has now grown to 114 factories,” said the Kudus Customs and Excise Supervision and Service Office Head, Gatot Sugeng Wibowo on June 28.

According to him, the number of new factories went up to 111 in February this year and increased again to 114 in June in both Kudus and Jepara regions. He claimed this number could rise as there were more permits being submitted currently.

Wibowo believed the rise in the cigarette business was also due to the shift in behavior of smokers during the pandemic where consumers of Class I cigarettes switched to Class II and III cigarettes that were sold under more affordable prices.

This is backed by the data where Group II and III cigarette brands have increased production whereas Group I brands slumped in sales. Another factor behind this phenomenon, Wibowo explained, was the ease of submitting permits to establish cigarette factories in the areas that enticed illegal businesses to go legal.

Read: No Middle Road for Tobacco

ANTARA