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This year, it is reported that BSN (National Standardization Agency) will issue SNI (Indonesian National Standard) for e-cigarette products. Aryo Andrianto, as Chairman of APVI (Indonesian Personal Vaporizer Association), said that the decision to implement SNI for vapes was made after a drafting process that began last year.

"The SNI for E-cigarettes will be issued this year. It was drafted last year, and this year it will be implemented. It just needs to be signed," said Aryo.

The e-cigarette industry is currently experiencing significant development, starting with a 40% increase in the number of users from last year, now reaching 2.2 million as of July 2022. Moreover, in terms of state revenue contribution, the industry has contributed 700 billion rupiah in excise taxes and is targeted to reach 1 trillion rupiah this year.

Meanwhile, in terms of investment, the e-cigarette industry is now more potential and promising. This is because massive investments from China and a number of foreign companies are reportedly queuing up to invest in the country.

For example, PT Smoore Teknologi Indonesia (STI), a Chinese company, has invested 1.12 trillion rupiah in the Indonesian e-cigarette industry and established a company in Malang, East Java, at the end of June 2022.

According to Aryo, throughout 2022, many foreign investments from China will come to engage in the domestic e-cigarette industry.

"For the rest of this year, it is said that there will be about 5 Chinese companies that will invest in Indonesia," said Aryo.

Aryo himself did not specify the total value of potential investments this year; he only revealed that there would be an investment entering Batam worth under 1 trillion rupiah.

The investments to be made by China consist of varying scales, from small to large-medium. In total, more than 10 Chinese investors have the potential to enter Indonesia, and these companies plan to build their factories in several locations, including Batam and several points in East Java Province. Meanwhile, China has about 20 large-scale corporations operating in the e-cigarette industry.

Source: Ekonomi Bisnis