Indonesian Tobacco Production Plummets to the Second Lowest Level in Past 6 Years

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Indonesian Tobacco Production Plummets to the Second Lowest Level in Past 6 Years
According to CNBCIndonesia on May 23, Indonesia's tobacco production in April 2024 decreased due to the Lebaran holiday season.

According to CNBC Indonesia on May 23rd, Indonesia saw a decrease in tobacco production in April 2024, which is consistent with the seasonal pattern of Lebaran.


According to data from the Ministry of Finance and the General Administration of Customs, the tobacco production in April 2024 reached 19.84 billion cigarettes, a decrease of 28.8% compared to March 2024 (month-on-month). However, when compared to the same period last year (year-on-year), production this year increased by 1.6%.


It is worth noting that in April 2024, there will be a long holiday including Idul Fitri, totaling eight days from April 8th to 15th. Due to the increase in holidays, production levels will naturally decrease. Based on historical experience, tobacco production always experiences a decline in months with long holidays. Manufacturers typically ramp up production before the Idul Fitri holiday to meet high demand and prevent a decrease in production during the holiday.


According to reports, from 2017 to 2019, the months of the Lebaran holiday, which is before the outbreak of the pandemic, saw a decrease in tobacco production. Overall, the tobacco production from January to April reached 91.34 billion cigarettes. This number is the second lowest level in the past six years. The tobacco production from January to April 2024 is only slightly better than the same period in 2023, but it is significantly lower compared to the production in 2022 of 104.86 billion cigarettes, 101.41 billion cigarettes in 2021, 108.5 billion cigarettes in 2020, 110.9 billion cigarettes in 2019, and 96.72 billion cigarettes in 2018.


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