REPUBLIKA.CO.ID, JAKARTA -- Indonesian cigarette industry is threatened with bankruptcy following several regulations related to tobacco restriction. Deputy Chairman of Indonesian Cigarette Industry Forum (Formasi), Ahmad Guntur said that many tobacco industries collapsed in last five years.

"Indonesian cigarette industry was bankrupt in last four or five years due to government policy, which killed cigarette industries," Guntur said in a written statement recently as reported by Sammy Abdullah.

Tobacco industry is one of the most significant contributors to state budget through tax revenue. The value reached 75 trillion in 2011, higher than mining tax contribution.

Many regulations are counterproductive with unemployment rate in the society as tobacco industry absorbed many workers. Other policies, such as the high cigarette excise policy, tobacco control policy, anti-smoking campaign, as well as cigarette and tobacco advertising ban caused the collapse.

Guntur said that small and medium cigarette producers depended on the new government. He waits for government's change to support cigarette industry.

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