Tobacco Production Industry In Central Java Slumps

Kamis, 06 Februari 2014 | 09:07


The business in tobacco production industry (IHT) of micro and small business scale in Central Java continues to decline each year.



Head of Agro, Chemical, and Forestry Industries at the Industrial and Trade Service (Disperindag) of Central Java Ratna Kawuri said the identification and mapping result showed there are 66 non-produced industries.

“There were still 277 business units in 2012. We have found 66 non-produced industries recently that made it remains into 160 units of IHT which are still actively producing,” she said, Wednesday (2/5). 

According to her, the declining of business units which are still actively producing has brought impact to the slump of tobacco production, in particular with clove cigarettes in Central Java.

The production center of clove cigarettes in Central Java is spread in Kudus, Semarang, Jepara, and Pati Regencies, while the raw materials are obtained from Temanggung.

The slump is caused by regulation which hampers the businessmen, such as the one that requires a 200 sq m land area to the industry classified in group III as well as progressive customs tariff.

“The regulation burdens the micro and small industry for tobacco production due to most clover cigarettes industry in Central Java is classified in group II under the production volume of up to 300 million cigarettes per year,” she said.

Statistics Indonesia (BPS) of Central Java recorded the tobacco processing industry production of the province’s micro and small scale in Q IV/2013 slumped by 62.94% compared with the same period in 2012.

Head of BPS for Production Statistic Totok Tavirijanto said generally the performance of micro and small industry in Central Java in Q IV/2013 increased by 6.71% compared with Q IV/2012.

“Yet, the production of tobacco processing industry group slumped by 62.94%,” he said.

At the same period, the tobacco processing industry for large and medium scale made a production increase of 12.81%.

“The increase was an effect from the investment made in Q III/2013 which was reaped in Q IV/2013. The production was at its high performance,” he said.

Regulation Ratification

Meanwhile, the Indonesian Tobacco Farmers Association (APTI) of West Java is considering the ratification of tobacco controlling regulation such as Framework Convention on Tobacco Control (FCTC).

APTI Chairman of Counseling Board of West Java Iyus Supriatna urged the government for not making ratification in a rush and observing other countries which become the competitors on tobacco.

“The regulation has made the farmers become restless. The government should be objective to consider the farmers’ life instead considering the government’s own purpose,” he said.

According to him, tobacco is not only beneficial to cigarettes but also as pesticide material.

The Board even suggested corn to be a proper commodity whenever the government is still urging the ratification of FCTC.

In his opinion, the corn plantation is performed to hold import as chicken feed raw material, which has made contribution of 90% to feed industry.

However, he said, the government should be consistent to do counseling starting from planting period up to the production. In this case, the farmers should not gain loss.

The tobacco production in West Java has fallen up to 40% into 5,100 tons from 8,500 tons per year which was triggered by extreme weather. (k29)

by JIBI, Ana Noviani, Renat Sofie Andriani
source http://business.bisnis.com