Hello Big Boss!! How are you today? I hope you're always healthy, your sustenance flows smoothly, and all your activities are made easy!!
Aryo Andrianto, Chairman of the Indonesian Personal Vaporizer Association (APVI), shared his views on vape products, which are one of the HPTL (Other Tobacco Processing Products) that are becoming increasingly popular among various segments of society every day. This aligns with the public's increasing knowledge about vape, which has a lower health risk profile than conventional cigarettes.
He believes that this phenomenon indicates that the vape market has the potential to continue growing over the next 10 years.
“We believe that vape will continue to grow over the next 10 years, innovations will continue, and businesses will also grow,” said Aryo.
Aryo stated that the number of businesses in the vape industry is growing daily. Based on APVI data, there are currently around 1100 association members, including 100 distributors/agents, over 200 producers, and the rest are vape shops/retailers.
“With this number of businesses, the vape industry is currently able to absorb 80-100 thousand workers,” he said.
In this context, Aryo wants the government to create comprehensive regulations to serve as an umbrella for the operation of the vape industry in Indonesia.
“Besides excise duty provisions, we also need other regulations as a very important component for business certainty, both in terms of production and trade,” he emphasized.
Director of Communication and Guidance for Service Users at the Directorate General of Customs and Excise, Nirwala Dwi Heryanto, stated that the overall contribution of vape excise revenue in 2021 was 0.33%, equivalent to 629 billion rupiah.
Nirwala hopes that in 2022, the vape industry will be able to contribute 648.84 billion rupiah, especially due to the rapid development of e-cigarettes from 2018 to 2020.
“Since the excise tax was applied to e-cigarettes, this industry has been able to contribute more. Thus, it absorbs domestic raw tobacco commodities. I think this development is quite good,” said Nirwala.
According to Nirwala, the desired regulation for the vape industry is fundamentally the same as the regulations applied to other HPTL products in Indonesia.
“That is, by continuing to accommodate the concept of simplifying provisions and adapting to the vape/e-cigarette industry, which is still largely a small and medium-sized industry,” he explained.
Source: Kontan ID