The Indonesian tobacco industry has welcomed the government's recent decision not to increase the tobacco excise tax (Cukai Hasil Tembakau or CHT) for 2025. This decision has brought a sense of relief among industry stakeholders, who have been voicing concerns over the potential negative impact of tax hikes on their businesses and employment levels.

Rio Sandy Pradana from Bisnis.com highlights that the industry is particularly focused on maintaining stability in regulatory measures. With the new administration under Prabowo Subianto, there is a strong desire among industry players for a favorable environment that supports their operations. The tobacco sector has been under pressure from various fronts, including increasing taxation and stringent regulations aimed at reducing smoking rates and promoting public health.

Industry representatives stress the importance of a balanced approach that considers both health objectives and economic viability. They argue that excessive regulations, such as proposals for plain packaging, could harm their competitiveness and lead to job losses. The industry's primary concern is that new policies should not stifle growth or push businesses towards the informal market, which can further complicate regulatory compliance and diminish revenue for the government.

During a recent industry meeting, stakeholders discussed the need for the government to conduct a thorough review of existing policies. They emphasized that any future changes should involve consultations with industry players to understand their perspectives and challenges better. This collaborative approach is viewed as essential for developing sustainable policies that benefit both public health and the economic landscape.

Moreover, industry leaders are hopeful that the government will prioritize dialogues with the tobacco sector to ensure their voices are heard. They believe that constructive communication can lead to innovative solutions that align health goals with economic interests. As the government navigates its priorities, industry representatives are optimistic that the current administration will recognize the value of the tobacco sector and its contributions to the economy.

Overall, the decision to keep the tobacco tax steady in 2025 marks a pivotal moment for the industry, reflecting a willingness to engage in meaningful discussions regarding the future. The stakeholders remain vigilant and proactive, advocating for policies that protect their livelihoods while also addressing health concerns.

In conclusion, the Indonesian tobacco industry is at a crossroads, seeking to balance public health initiatives with economic realities. As they move forward, the collaboration between the government and industry will be crucial in shaping a regulatory environment that fosters growth and stability. This perspective underscores the broader narrative of how industry and government can work together for mutual benefit, paving the way for a healthier and more economically viable future.

Cited from Rio Sandy Pradana from Bisnis.com.