Hand rolled cigarette Employers Concerned About Increase in Excise Tariff

Jakarta (ANTARA News) - A businessman's hand rolled cigarettes (SKT) and trade unions today expressed concern over government plans to raise tariffs, 2011 at 5 percent which is considered to have a negative impact on employment in the sector SKT.
According to Chairman of the MPS Society, Djoko Wahyudi, in a press release received here on Thursday night, his side fully understand the discourse of the government to re-raise the cigarette excise tax rates to meet revenue targets next year.

But the government is expected to wisely determine the value of excise tax increases, especially for products in the category SKT considering this category of the most high absorption of its workforce.

He added that as business owners who have about 60,000 employees who rely on MPS 38 units, of course that is needed is the creation of an environment that ensures the protection and certainty.

Djoko said the impact of declining product demand SKT, one of its members in Pacitan forced to make layoffs in the used employees. Now the number of employees at MPS Pacitan live 1450 people than when it first opened in 2006 the number reached nearly 3000 employees.

`Termination of employment relationship can not be avoided because the market demand continues to decline due to the shift of consumers to products and machinery. The government should be keen to see this condition and consider the serious impact that occurs if the excise rate increase SKT policy can not protect the fate of its workers,` he said.

Djoko voiced the comment at an event attended by 38 small and medium entrepreneurs in the island of Java, members of the Society of MPS with the Federation of Trade Unions Food Beverage Tobacco Cigarette-SPSI (FSP RTMM-SPSI) and PT HM Sampoerna Tbk (Sampoerna) to warn of the adverse effect of rising excise tax on SKT sector.

The event was held at the MPS Bantul, Bantul regency, Yogyakarta. SKT entrepreneurs are producing cigarettes under license Sampoerna.

Meanwhile, the torch Buadiarto, Bantul MPS owner says, As a Production Partner clove cigarettes hand, workers and the community feel the benefits of absorption of labor and economic growth.

`But because of declining demand lately, our workers down its earnings in line with the decrease their working hours.

Chairman of the FSP RTMM-SPSI, Mukhyir Hasan Hasibuan, expressed his concern for the fate of 493,919 workers FSP members RTMM-SPSI majority are workers in the tobacco industry.

`We have been specially sent a letter to Mr. President who essentially expect the Government to give special attention and protection to the workers of our members are primarily dependent on SKT sector,` he said.

On the same occasion, Sampoerna reaffirmed its commitment to protect SKT sector. `Dji Sam Soe and Sampoerna Kretek is part of our flagship product portfolio and the total staff was around 28,300 people and 18,000 of them are from SKT employees.`

Through partnerships with local cooperatives and entrepreneurs, economic growth and potential of the local workforce has been growing rapidly at around 38 MPS units scattered throughout the area of Java.

According to Mark Hozea, Head of the Hand rolled Manufacturing, the institute continues to play an active role by voicing their views on important matters, such as tobacco regulation and fiscal policy.

He added that the Government has followed the Tobacco Products Industry Roadmap is a comprehensive and balanced set of government policy direction for the tobacco industry until 2020.

`Determining the direction of fiscal policy should always refer to the Roadmap is because it provides certainty for businesses and protect jobs,` he said.

By : Djoko Wahyudi
Source : Antara