Foreign Control of Indonesia's Tobacco Industry Threatens Farmers' Livelihoods

Market by 2FIRSTS.ai
Jan.12.2024
Foreign Control of Indonesia's Tobacco Industry Threatens Farmers' Livelihoods
Indonesian Vice Presidential candidate Mahfud MD states that the tobacco industry is still controlled by foreign companies, affecting local farmers' livelihoods.

According to a report by Okezone on January 11th, Indonesia's third vice-presidential candidate, Mahfud MD, has stated that the country's tobacco industry is still controlled by foreign companies, directly impacting the livelihood of local tobacco farmers.

 

Machfud believes that Indonesia's tobacco industry holds immense potential for development and can benefit tobacco farmers. However, the intervention of foreign tobacco companies poses a challenge for small-scale tobacco farmers.

 

In a speech in Madura, he stated that "in the past, tobacco was the main source of income for Madura farmers. The tobacco supply chain was controlled by big companies, and farmers' prices were manipulated." He pointed out that certain regulations categorize tobacco as a harmful substance, posing a threat to the tobacco industry, especially tobacco farmers.

 

He further added, "There are regulations which recognize tobacco as hazardous. As a result, tobacco farmers in Toraja, Madura, and Temanggung have experienced a significant decline in income. Despite being deemed harmful, the largest tobacco factory is managed by an American company, Philip Morris.

 

In order to empower tobacco farmers, Mahfoud has pledged to reevaluate the regulations surrounding the tobacco industry. He hopes to increase tobacco production and ensure that the majority of tobacco farmers benefit from it.

 

"I believe there is a need to reassess this policy in order to allow tobacco farmers to prosper without resorting to illegal tobacco production. The reason why people engage in illicit production is because they are pushed into difficult situations. We should establish regulations that are easy to enforce," he concluded.

 

We welcome news tips, article submissions, interview requests, or comments on this piece.

Please contact us at info@2firsts.com, or reach out to Alan Zhao, CEO of 2Firsts, on LinkedIn


Notice

1.  This article is intended solely for professional research purposes related to industry, technology, and policy. Any references to brands or products are made purely for objective description and do not constitute any form of endorsement, recommendation, or promotion by 2Firsts.

2.  The use of nicotine-containing products — including, but not limited to, cigarettes, e-cigarettes, nicotine pouchand heated tobacco products — carries significant health risks. Users are responsible for complying with all applicable laws and regulations in their respective jurisdictions.

3.  This article is not intended to serve as the basis for any investment decisions or financial advice. 2Firsts assumes no direct or indirect liability for any inaccuracies or errors in the content.

4.  Access to this article is strictly prohibited for individuals below the legal age in their jurisdiction.

 

Copyright

 

This article is either an original work created by 2Firsts or a reproduction from third-party sources with proper attribution. All copyrights and usage rights belong to 2Firsts or the original content provider. Unauthorized reproduction, distribution, or any other form of unauthorized use by any individual or organization is strictly prohibited. Violators will be held legally accountable.

For copyright-related inquiries, please contact: info@2firsts.com

 

AI Assistance Disclaimer

 

This article may have been enhanced using AI tools to improve translation and editorial efficiency. However, due to technical limitations, inaccuracies may occur. Readers are encouraged to refer to the cited sources for the most accurate information.

We welcome any corrections or feedback. Please contact us at: info@2firsts.com

Philip Morris International Restructures to Drive Its Smoke-Free Transformation
Philip Morris International Restructures to Drive Its Smoke-Free Transformation
Philip Morris International (PMI) announced a new organizational model effective January 1, 2026, creating two main business units — PMI International and PMI U.S. — to accelerate its smoke-free strategy. The restructuring replaces four regional segments with three: International Smoke-Free, International Combustibles, and U.S., enhancing agility, governance, and long-term growth in reduced-risk products.
Nov.05 by 2FIRSTS.ai
Euromonitor: RRP Market Reaches $74 Billion, Accounting for 12.7% of Global Nicotine Industry as Five Key Trends Drive Transformation
Euromonitor: RRP Market Reaches $74 Billion, Accounting for 12.7% of Global Nicotine Industry as Five Key Trends Drive Transformation
In 2025, global tobacco leaf production surged, but prices stagnated as climate change intensified farming risks. 2Firsts reports from the ITGA meeting, revealing structural challenges and transition pressures in the industry.
Sep.29
InterTabac 2025 Insights|BAT Exhibits Full Portfolio, Highlights VUSE Ultra and Introduces Zero-Nicotine Products
InterTabac 2025 Insights|BAT Exhibits Full Portfolio, Highlights VUSE Ultra and Introduces Zero-Nicotine Products
2Firsts’ on-site reporting at InterTabac 2025 in Dortmund, Germany, found that BAT showcased a range of HTP, e-vapor, and nicotine pouch products, with a focus on zero-nicotine e-vapor and the VUSE Ultra line, and set up an interactive experience area.
Sep.19 by 2FIRSTS.ai
Smoore International's subsidiary, Transcend Biopharma, has its ANDA accepted by the FDA, potentially granting it 180 days of market exclusivity
Smoore International's subsidiary, Transcend Biopharma, has its ANDA accepted by the FDA, potentially granting it 180 days of market exclusivity
Smoore International announced that the U.S. FDA has accepted the Abbreviated New Drug Application (ANDA) for its Breo® Ellipta® 100/25 generic drug, submitted by its wholly-owned subsidiary, Transpire Bio. Transpire Bio stated that if approved, it is expected to receive 180 days of market exclusivity. In the United States, Breo® Ellipta® is already approved for the maintenance treatment of asthma and chronic obstructive pulmonary disease (COPD).
Sep.25 by 2FIRSTS.ai
2Firsts Investigation | China–U.S. E-cigarette Shipping Costs Surge: Sea Freight Up Over 200%, Air Cargo Inspection Rate Exceeds 50%
2Firsts Investigation | China–U.S. E-cigarette Shipping Costs Surge: Sea Freight Up Over 200%, Air Cargo Inspection Rate Exceeds 50%
Since late July, China–U.S. e-cigarette shipping costs have surged — sea freight up over 200%, air cargo inspection rates exceeding 50%. 2Firsts investigates the key drivers behind the spike and how the industry is responding.
Oct.15
South Korea Publishes List of Major Tax Delinquents: Vape Wholesaler Owes Over USD 15.5 Million
South Korea Publishes List of Major Tax Delinquents: Vape Wholesaler Owes Over USD 15.5 Million
The Korea Customs Service (KCS) has released a list of 236 habitual and large-scale customs tax delinquents with total unpaid taxes amounting to approximately USD 917 million. Among them, a vape wholesaler tops the individual list, owing about USD 15.57 million, while another vape-related company owes roughly USD 12.02 million.
Nov.11 by 2FIRSTS.ai