GDP from manufacture of tobacco products Indonesia 2014-2023

In 2023, preliminary figures showed that the gross domestic product (GDP) from the manufacture of tobacco products in Indonesia was about 147.83 trillion Indonesian rupiah, showing an increase from the previous year. Tobacco is an important part of Indonesian life, and smoking is still prevalent in the Indonesian society. 

Where smoking is still the norm

Indonesia is the second-largest market for cigarettes after China. Indonesian smokers spent between 20 to over 150 thousand Indonesian rupiah on cigarettes weekly, and spending on tobacco made up around four percent of the total expenditure among Indonesian households. There have been several attempts at cutting tobacco consumption in the country. Several sub-national governments have adopted smoke-free regulations and partial tobacco advertising bans. At the national level, however, with the noted exception of the adoption of a 40 percent pictorial on-pack health warning, no significant progress has been made. Indonesia remains one of the few countries that broadcasts cigarette advertisements on television, and its cigarette tax is amongst the lowest in the world.

Indonesia's tobacco production

In 2022, over 225 thousand metric tons of tobacco were produced in Indonesia. Central and East Java, as well as West Nusa Tenggara, are the main centers of tobacco production Indonesia, with the tobacco industry being one of the main employers in some of these provinces. As such, proponents of the tobacco industry assert that tobacco control will deprive farmers and industry workers from earning a living. However, a study of smallholder tobacco farmers in Indonesia showed that tobacco farming is not profitable for the farmer, as most farmers remain relatively poor, and many suffer from numerous harmful diseases such as the green tobacco disease.