Indonesian Parliament Backs Ministry's Plan to Strengthen KIHT Against Illegal Cigarettes

Constructive Approach to Illegal Cigarette Operators

The Chairman of Commission IX of the Indonesian Parliament, Mukhamad Misbakhun, has welcomed the Ministry of Finance's initiative to strengthen the Industrial Areas for Tobacco Products (KIHT) as a means to guide illegal cigarette operators into the formal economy. Misbakhun emphasized that this approach represents a more constructive and long-term strategy in dealing with the issue of illegal cigarettes.

Supporting Small-Scale Operators

Misbakhun noted that many small-scale entrepreneurs wish to operate legally but lack the necessary access and guidance. By providing mentoring and integrating KIHT, the government can encourage these operators to formalize their businesses, thereby enhancing business certainty and contributing to national revenue.

Implementation and Expected Outcomes

The strengthening of KIHT is expected to provide a more realistic pathway for illegal operators to legalize their operations. This move is seen as a positive step towards reducing illegal cigarette circulation while increasing state revenue through taxation.