Ken Research - Indonesia Cigarette Market | Page 2

few years. Despite another excise tax on cigarettes, the Industry Ministry of Indonesia targets
a limited growth within the cigarette industry. It is a ritual that every year the Indonesian
government raises the excise tax on tobacco products. The government is interested in
curtailing the consumption of tobacco products in an effort to improve the health of the
Indonesian population. There is less room for cigarette advertisement in Indonesian media
and every pack should have a mandatory (graphic) warning image on cigarette packages.
These measures had a great impact on the cigarette industry and consumption is decreasing at
a slow pace. Cigarette production of cigarettes has fallen drastically and will continue over
the next few years.
Indonesia is a country famous for its male smokers starting from 15 years of age or older.
While smoking is decreasing across the world, it is actually increasing in Indonesia. The
country has a large number of smokers who are majorly teenagers and children. There is an
indication of the Indonesian government’s lack of commitment to combat cigarette
consumption because tobacco companies are the major sponsors of all national sports and
educational scholarships. Despite the increase in excise tax on the cigarettes in Indonesia, a
packet of 20 cigarettes is still the cheapest in the world. Research indicates that majority of
the poor population actually spend on cigarettes rather than on food because they choose to
stay hungry than resist the need to smoke. The poor population spends an average six times
more on tobacco than on dairy and egg products. Therefore, the sale of cigarettes in Indonesia
is in billions every year.
Indonesia’s Future Tobacco Plans: The Indonesian government is planning to raise import
duties for tobacco which is the major raw material for the production of cigarettes. The high
import duty will surely enhance the welfare of Indonesian tobacco farmers. Tobacco imports
are a must because Indonesia's tobacco production is not enough to meet the consumers’
growing demand.
Government’s Effort to Reduce Smoking: There is very little effort to decrease the
consumption of cigarettes because the ministry has issued a roadmap to triple the cigarette
production by the y ear 2020. It is hardly a serious attempt in the country to reduce smoking
compared to other countries which are desperate to reduce smoking population. It was
studied that if the price of a cigarette pack is raised excessively in Indonesia then a massive
campaign would be carried out to create awareness in schools, universities, media and other
public places. To make sure the future generation is healthy, the Indonesian government
should make strong radial efforts to reduce smoking population.
Future of Indonesia’s Cigarette Industry: Cigarette consumption in Indonesia has
contributed to the poverty rate in urban areas as well as in rural areas. The most efficient
solution to reduce cigarette consumption is to introduce alternative tobacco products with
lower health risks such as nicotine patches, Swedish snus, e-cigarettes and HNB devices.
Indonesia population were suggested to use vapour or e-cigarettes and heat-not-burn (HNB)
devices to deal with cigarette consumption. The country has more than billion smokers and is
leading globally with huge number of smokers. Smoke cessation products are tough to find in
Indonesia, therefore, promoting the growth of cigarette industry over the coming years.
Key Topics Covered in the Report:
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Indonesia Cigarette Market
Indonesia Cigarette Market Analysis
Indonesia Cigarette Ma