The number of small cigarette factories has fallen by one third to 1,970 from 3,000 in 2007 as a shrinking market and tougher regulation prompt manufacturers to close their doors, the Jakarta Post reported.

Data from the Association of Cigarette Employers (Gapero) show factories in East Java fell by half to 563 from 1,100. Of the 400 cigarette makers operating in Malang in 2009, only 77 were manufacturing four years later, according to data cited by the newspaper. Companies still in business are cutting their workforces.
Bentoel Group, the country's fourth largest cigarette maker, has embarked on a voluntary redundancy program to cut 1,000 jobs from its workforce of 8,000, the Post said. However the company plans to produce about 20 billion cigarettes this year, more than in 2013, the newspaper said.