Tripling Cigarette Production to Boost the Cigarette Industry in Indonesia: Ken
Research
The report titled “Cigarettes in Indonesia”, provides a comprehensive analysis of cigarette
industry, demographics of cigarette market in Indonesia, cigarette leading players in
Indonesia, e-cigarette development, excise tax on cigarettes, government efforts to reduce
smoking and future of cigarettes market in Indonesia.
Industry Overview and Leading Players in Indonesia: Indonesia has witnessed
unfavourable economic conditions in the recent years. Inflation in basic necessities has
resulted in the consumer’s lower purchasing power which has indirectly affected the growth
of cigarette market in Indonesia. It was observed that the cigarette market posted a negative
growth due to inflation and consumers shifting towards e-cigarettes or vapour products. The
machine-rolled clove cigarette (kretek) is popular cigarette among the Indonesian population.
Other variants of cigarettes are hand-rolled Kretek, machine-rolled white and others. Gudang
Garam, HM Sampoerna, and Djarum are the major leading players in Indonesian cigarette
market. Gudang Garam leads in machine-made cigarettes and HM Sampoerna manufactures
both hand-made and machine made cigarettes. It was observed that there is a stiff competition
between these three leading players; therefore, it is difficult for new players to enter the
cigarette market in Indonesia. The leading cigarette manufacturers in Indonesia are Gudang
Garam, HM Sampoerna, Bentel Internasional Investama, Wismilak Inti Makmur, Djarum and
Nojorono. These six manufacturers control the Indonesia’s tobacco and cigarette market
while employing millions of workers. It is estimated that over 200,000 people die annually in
Indonesia due to heart disease and cancer caused by smoking.
Demographics of Indonesia Cigarette Consumption: Indonesia's cigarette industry is
under pressure in recent years due to various reasons but hopes for positive results in the next