Finance Minister Confirms Increase in Excise on Cigarettes

TEMPO.CO, Jakarta - The excise on cigarettes will certainly increase after the Value Added Tax (PPN) is increased from 8.4 to 8.7 percent starting next year, Finance Minister Bambang Brodjonegoro stated on Wednesday.

"I can ensure that the excise will increase, but it will not be as high as that set in the national budget," he noted after attending the launch of the Indonesia National Single Window (INSW) portal.

He did not explain in detail how much the excise will increase on cigarettes, stating that "we will see it later during the discussion on the budget."

Meanwhile, speaking in response to the government's PPN decision on tobacco products, Industry Minister Saleh Husin pointed out that the policy was counterproductive to the national cigarette industry.

Hundreds of former workers of the cigarette manufacturing company PT Tajimas in Kediri, East Java, staged a rally in front of the regional legislative assembly building to demand the local legislative assembly to play the role of a mediator to settle their dues, which had not been cleared by the company after they were laid off.

"Until today we have received no pay while we are laid off. Some have notreceived less than three months' pay, while others four months," Titik, a representative of the workers, affirmed.

She noted that the wages they received were also still below the regional standard, which is only Rp800,000 a month, while the national standard is Rp1.3 million for 2015.

Titik remarked that she along with her colleagues continue to demand their pay, which is needed to sustain their livelihood after they were laid off.

A total of 69 workers have not yet received their pay after they were laid off since May 2015 without clear reasons.

The workers had held demonstrations several times. They believed the company would no longer employ them, and so, they shifted their focus on demanding the payment of their pending wages.

ANTARA