Indonesia's Cigarette Paper Industry: A Booming Opportunity for Exporters
According to a report from Tribunnews on May 17, cigarette paper or pre-rolled cigarette paper has become the industry in Indonesia that employs the most labor.
A company in the cigarette paper industry can hire thousands of people, especially women. The Ministry of Industry also sees new market opportunities, particularly in global exports, which have potential for growth. The global trade value of cigarette paper is expected to reach $903 million by 2022, with Indonesia only accounting for 3.53% of that. Despite low demand for cigarette paper in Indonesia, global demand is increasing, providing local manufacturers with export opportunities.
The Minister of Industry, Putu Juli Ardika, stated that the cigarette paper manufacturing industry is an innovative sector, as it taps into niche overseas markets and sees continuous growth in demand from tobacco shops.
In addition, this industry has absorbed a large amount of labor, especially female labor," Putu stated during his visit to Bali.
One of the Indonesian pre-rolled cigarette paper manufacturers, PT Mitra Prodin, located in Bali, has an annual production capacity of 2 billion rolls and employs 4,556 workers. In 2021, the company successfully sold over 746 million pre-rolled cigarette papers worldwide.
Putu expressed their appreciation for the Ministry of Industry's support of PT Mitra Prodin being able to hire so many workers in Bali, especially considering that the majority of their employees are women.
We also appreciate the company's contribution to the national foreign exchange, as 100% of its products are intended for export, with 90% exported to North America (Canada, USA and Mexico), and the rest exported to Europe," Putu revealed.
However, he added that there are still many untapped markets in Indonesia's domestic cigarette paper industry, and Indonesian cigarette paper products also have the determination and opportunity to expand into the global market.
This is an opportunity for Indonesian cigarette paper products to expand in the global market, as there is still significant potential growth in the future," Putu said.
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