Data from APTI indicates that there are currently 192,525 hectares of tobacco plantations in Indonesia. As such, the size of the country's tobacco plantations has declined drastically over the past years. APTI said that several years ago, there were still 260,000 hectares of tobacco plantations in Indonesia as some farmers have turned to palm oil. This year, the average tobacco price ranges between IDR 34,000 and IDR 47,000 per kilogram, making the tobacco plantation business less appealing. The APTI comments that a good price for tobacco farmers would be in the range of IDR 80,000 and IDR 120,000 per kilogram.

However, tobacco imports (mostly from China) are much cheaper at around IDR 14,000 per kilogram than domestically-produced tobacco, implying that imports are a much more attractive option for the country's cigarette producers.

Indonesia's Industry Ministry said cigarette consumption in Indonesia increases by about 5-7 percent each year. In 2015 the Ministry expects that the country's cigarette manufacturers will produce a total of 398.6 billion cigarettes. By 2020, cigarette production is estimated to rise to 524 billion cigarettes. There are currently around 700 cigarette manufacturers registered in Indonesia. However, only 200 to 300 of these companies are active.

Indonesia's Tobacco Production & Import 2010-2015

    2010   2011
  2012   2013   2014   2015¹
Tobacco Production
(in tons)
135,678 214,524 226,704 230,768 187,000 170,000
Tobacco Import
(in tons)
 64,800 104,400 133,800 121,200 100,000 130,000

¹ projection
Source: Kontan

There are four tobacco companies listed on the Indonesia Stock Exchange (IDX):

Gudang Garam
HM Sampoerna
Bentoel Internasional Investama
Wismilak Inti Makmur

Gudang Garam and HM Sampoerna are among the countries largest companies in terms of market capitalization on the IDX.