Tag: indonesia

white cloud cigarettes

pattyn banner

itm banner

Jakarta to remove cigarette billboards

| November 19, 2015

Officers from the public order agency of Jakarta, Indonesia, on Nov. 18 removed several cigarette billboards in the Mampang Prapatan district in South Jakarta whose permits had expired.

The billboard removal operation was lead by district head Asril Rizal, who said the removal preceded the final banning of all cigarette billboards in December as decreed by Gubernatorial Regulation No. 1/2015.

“In December, all tobacco billboards will be removed because the gubernatorial regulation will come into effect as of January next year,” Asril said as quoted by, on Wednesday.

Earlier this year, Gamal Sinurat, assistant to the city secretary for city development, said the city would issue a gubernatorial regulation on the placement of billboards, according to a story in The Jakarta Post. Sinurat said the administration had disseminated the planned regulation to all property owners.

“We will reregister and redefine the locations that are totally free from billboards and the places that have strict or light controls on the placement of billboards,” he added.

Tobacco taxes to rise 11 percent in Indonesia

| November 11, 2015

The Indonesian government has announced an average increase in tobacco excise taxes of 11.19 percent, which will take effect on Jan. 1, 2016.

“The highest tax increase of 12.96 to 16.47 percent will be applicable to machine-rolled cigarettes, and the lowest increase of 0 to 12 percent will apply to hand-rolled cigarettes,” said the Finance Ministry’s director general of taxation, Heru Pambudi.

Heru said the government would not increase taxes on hand-rolled cigarettes in the III B group because of their slower production rate in comparison to machine-made cigarettes, according to a story in The Jakarta Post.

This year the Indonesian government set a target of Rp 139.12 trillion (US$10.29 billion) for tobacco tax revenue. In total, the excise revenue target listed in the 2016 state budget is Rp 155.52 trillion, which includes Rp 148.86 trillion from tobacco taxes and Rp 171.2 million from alcohol taxes.

Heru expressed his optimism that the government would reach its targeted cigarette excise revenue due to the upcoming regional elections, stating that “consumption usually increases” at regional election time.

Deputy Coordinating Economic Minister Edy Putra Irawady has said that in 2020, the government will no longer take tobacco taxes into account in the state budget, or the contribution of the tobacco-related industry to employment. According to Edy, by 2020 the government would have prioritized public safety over the economic impacts of the tobacco industry.

Billboards with cigarette ads to be dismantled in Indonesia

| October 19, 2015

Billboards that advertise cigarettes and are displayed around schools in North Jakarta, Indonesia, will be dismantled in the near future, according to a story in the daily Tempo.

Mustafa Kemal, head of North Jakarta Education Sub-Department Regional I, stated that the existence of such billboards is unethical and could potentially influence students to smoke.

“If there are students caught smoking, either inside or outside of schools during school hours, they will be sanctioned,” he said.

Such sanctions would include summoning a child’s parents and revoking their Jakarta Smart Card.

Purwanto joins TSAL as technical sales manager

| September 14, 2015

Tobacco Solutions Asia Limited (TSAL), an engineering solutions firm that has designed and developed some of the world’s smallest tobacco processing equipment, has appointed Arif Purwanto to the newly created position of technical sales manager for the Indonesian region, effective Oct. 1. Purwanto will assist the TSAL team in marketing TSAL products and services to a target portfolio of cigarette manufacturing factories in Indonesia. He will report to group CEO Dr. Iqbal Lambat and operate out of the FELI Denpasar Bali office in Indonesia.

Purwanto has a bachelor’s degree in mechanical engineering from Sunan Giri University Surabaya. He has over 17 years of experience in machining and engineering, including four years spent heading up G.D Italy’s QA Equipment strategy in Indonesia. Purwanto is of Indonesian nationality and fluent in both Bahasa and English.

Closures expected in Indonesian tobacco industry

| April 23, 2015

As much as 15 percent of the workforce at tobacco-related companies in East Java, Indonesia—or more than 23,000 workers—are at risk of being laid off this year, according to a story in the The Jakarta Post.

Based on 2014 data, the number of people working in East Java’s tobacco and tobacco products industrial (IHT) sector was 159,117, according to East Java Chamber of Commerce and Industry (Kadin) vice chairman Dedi Suhajadi. The sector’s workforce also decreased by 21,300 workers in 2014 from 180,466 workers in 2013.

“Many IHT entrepreneurs are affected,” Dedi said. “This is attributable to the annual increase in tobacco tax, government regulations and groups that interfere with the concentration of IHT entrepreneurs in meeting tax obligations.”

The government raised the IHT tax target to IDR141.7 trillion in 2015 from IDR111.21 trillion in 2014. Over the past five years, the average increase in IHT tax was 16.09 percent.

Data from the East Java Manpower and Transmigration Office indicated that 790 IHT companies were still operating in 2014, however, only about 200 were producing on a regular basis. In 2011, there were about 1,100 cigarette factories, according to Dedi.

“Those that have gone out of business are small- and medium-scale factories. Only the large-scale companies are surviving,” said Dedi.

Between 2009 and 2013, approximately 4,900 cigarette factories closed their doors.

Low compliance with health warnings requirement

| June 27, 2014

The majority of cigarette packs in Indonesia do not comply with the country’s new graphic health warning requirements, according to a report in The Jakarta Post.

The Drug and Food Monitoring Agency (DFMA) said only 13.44 percent of cigarette packages circulating in the market bear the pictorial warnings that became mandatory on June 24.

Under a presidential regulation on tobacco control issued last year, cigarette makers must allocate 40 percent of cigarette packaging for text and pictorial warnings about the health effects of smoking.

The DFMA and regional food and drug offices in 31 regions monitored the implementation of the new tobacco-control rules during the two days following their enactment.

Of the 2,270 cigarette packages monitored, only 305 or had pictorial warnings. There are 3,363 cigarette brands, produced by 672 companies, registered with Indonesia’s Customs and Excise Directorate.

Health Minister Nafsiah Mboi said that cigarette makers should recall all products that did not display the pictorial warnings.

The ministry said that there would be penalties for companies that failed to comply with the new policy, ranging from written warnings and reprimands to the revocation of their business licenses.

Nafsiah said companies that missed the deadline would be issued warnings, and those that failed to comply could eventually be fined up to $42,000. Their executives could face up to five years in prison.

The country’s biggest cigarette producer, Philip Morris-owned Sampoerna, said it began distributing products with the new warnings on June 23, but it needed more time to clear out existing stock.

A national survey in 2012 found that 67 percent of all Indonesian males over age 15 smoked—the world’s highest rate—while 35 percent of the total population lit up; a figure surpassed only by Russia.