The tobacco industry is the largest industry in Indonesia, especially the SKT (hand-rolled cigarette) industry. Having to say that, SKT Industry is huge labor intensive field. However, the Covid-19 pandemic and the discourse of increasing cigarette excise duties pose a threat. The Automation will be the answer of Optimizing Profit in SKT Industry. Let’s take a look at the following information.
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Tobacco Industry in Indonesia
Citing the Central Statistics Agency (BPS), the number of smokers in Indonesia in 2020 reached 33.8% or around 65.7 million Indonesians are active smokers. This leads to the high demand of cigarettes. The cigarette industry also plays an important role in economy. Hence, cigarette industry contributes 1.66 percent of Indonesia’s total Gross Domestic Product (GDP) and foreign exchange through cigarette exports which reached US$700 million.
Hand-Rolled Cigarettes Industry During Pandemic and Rising Excise
In the last few years, the Government of Indonesia has continued to evaluate the discourse of increasing the excise duty on cigarettes. Hence, the hand-rolled cigarettes industry is the most affected industry. Having to say that, this industry is also stroked by the pandemic of COVID-19.
There’s an urgency of World Bank to the Government of Indonesia to carry out the fiscal reform in order to recover the economy. One of the industries suggested by the World Bank is the cigarette industry. Therefore, it is predicted the exercise revenues in Rencana Anggaran Pendapatan dan Belanja Negara (RAPBN) will reach Rp 203.920 trillion, increasing 11.9% compared to 2021.
This policy will be beneficial. However, for entrepreneurs this policy will have an impact on increasing production costs. Even though, as may it seems any increasing excise will not really affecting the demand. But the production cost will be higher. SKT Industry Automation is the right answer.
Light Slitting Machine, Industrial Automation is the Solution
For the SKT Industry, which is a labor-intensive industry, of course, the discourse of increasing excise taxes will be a hard consideration. Hence, increased production costs will be accompanied by considerations on reduction of employee salary .
Solo Abadi Indonesia’s come to the rescue!
We offer the solutions for entrepreneurs that will save production costs, improve production quality and most importantly increase company profits. We make this solution in the form of a Light Slitting Machine.
Light Slitting Machine, is our innovation for the SKT Industry. This machine works automatically to separate ambri from tobacco, which was initially done manually, while there is a possibility of the product being damaged and endangering the worker.
Light Slitting Machine 
Using Light Slitting, you can reduce the number of losses and improve product quality as well as company profits. To find out more information and complete articles about Light Slitting, you can visit our website at www.soloabadi.com and we’re always open for a consultation via our WhatsApp.
