Key points:
·Employment growth expectations: By 2023, the e-cigarette industry supply chain in Indonesia has created 150,000 - 200,000 job positions; with stable regulation and enhanced illegal monitoring, it is expected to add 210,000 - 280,000 more jobs by 2030, with a total employment scale reaching 490,000, growing in tandem with the expansion of e-cigarette users, distribution channels, and the development of small and medium retail enterprises.
·Tax contribution: In 2024, the e-cigarette industry's consumer tax reached 2.65 trillion Indonesian Rupiah (approximately 1.5 billion USD), increasing by 43.7% compared to 2023, and more than 20 times higher than the 990 billion Indonesian Rupiah (approximately 591 million USD) collected when it was first imposed in 2018.
·Development demands: PPEI and Arvindo call for clear regulatory rules and a roadmap for consumer taxes, believing that a stable and fair policy environment can maintain investment confidence, promote job creation and tax sustainability. This demand echoes the Finance Minister's statement of "balancing policies, protecting industry and workers."
2Firsts, September 26, 2025 - According to Kontan's report on September 24, it is expected that the number of workers in Indonesia's e-cigarette industry will continue to grow until 2030.
Chairman of the Indonesian E-liquid Manufacturers Association (PPEI), Daniel Boy, revealed that this growth is consistent with the expected increase in e-cigarette users and the expansion of distribution channels. It is projected that the retail small and medium-sized enterprises (SME) sector will grow by 1%-3% annually over the next five years.
Daniel stated on September 24th, "If regulations remain stable and illegal product monitoring programs are further strengthened, by 2030, this could potentially add 210,000 to 280,000 jobs.
Daniel stated that the e-cigarette ecosystem is driving the entire supply chain from e-liquid production to professional retail networks. Thousands of small and medium-sized enterprises in various regions directly benefit, with employment opportunities continuously increasing. By 2023, the entire supply chain from e-liquid manufacturing to distribution and professional retail will create between 150,000 to 200,000 jobs.
However, the Indonesian E-cigarette Retail Association (PPEI) and the Indonesian E-cigarette Retail Association (Arvindo) emphasize that regulatory certainty and a clear roadmap for consumer taxes are key requirements for the e-cigarette industry to continue growing and contribute to the national economy.
He stated that a consistent fiscal policy will maintain the investment environment, encourage job creation, and ensure the sustainability of national income.
The domestic e-cigarette industry is currently in a critical growth stage. We need a fair and stable regulatory environment for local enterprises to survive and develop," said Daniel.
During the same event, Chairman Arvindo, Firmansyah Siregar, added that the constantly expanding market provides opportunities for local industries to grow in a healthy and responsible manner.
He continued to say that this was in line with the news statement issued by Finance Minister Purbaya Yudhi Sadewa on September 19 in Jakarta, which emphasized the need for a balanced consumption tax policy to not only safeguard public health, but also protect industries and workers.
Furthermore, PPEI and ARVINDO also emphasized the importance of regulatory certainty and the role of the e-cigarette industry in creating employment opportunities for local businesses, especially small and medium-sized enterprises.
It is worth noting that the government revenue from other processed tobacco products, including e-cigarettes (HPTL), is increasing. The latest data shows that in 2024, the consumption tax revenue from the e-cigarette industry reached 26.5 trillion Indonesian Rupiah (approximately 1.5 billion US dollars), an increase of 43.7% compared to the previous year.
Compared to the first implementation of the HPTL product consumption tax in 2018 (990 billion Indonesian rupiah, approximately 591 million US dollars), this figure has increased more than 20 times.
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