Recent kretek factory closings prompted the Industry Ministry to ask for a reduction in excise taxes imposed on the hand-rolled clove cigarettes, the Jakarta Post reports.

“The hand-rolled cigarette industry is labour-intensive and distinctive to Indonesia so we need to ensure its sustainability. If the factories shut down and the producers shift production to machine-rolled cigarettes, that will add to unemployment,” Industry Minister MS Hidayat reportedly said. His ministry is preparing to ask the Finance Ministry to cut the levy, the newspaper said on its website.
Philip Morris International recently shut two hand-rolled kretek factories operated by its PT HM Sampoerna subsidiary, costing about 4,900 employees their jobs. The shutdowns were due to a decline in kretek volume, PMI said.