Molins

Tag: indonesia

bmj banner

Tobacco Rag banner

white cloud cigarettes

pattyn banner

itm banner

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.

 

Deadline nears for Indonesian health warnings

| June 18, 2014

Indonesia’s Food and Drug Monitoring Agency (FDMA) has told tobacco companies to comply with a government regulation requiring pictorial health warnings on cigarette packs by June 24, reports The Jakarta Post.

Indonesian tobacco companies produced 3,392 cigarette brands as of April, according to Indonesia’s taxation directorate general. Of those companies, only Bentoel, Sampoerna, Djarum and Gudang Garam had registered their cigarette packaging designs with pictorial health warnings, said Sri Utami Ekaningtyas, the FDMA’s addictive substances monitoring director.

“They have sent their pictorial health warnings and shown a commitment to launch these cigarette packs on 24 June. We are optimistic that other companies will follow,” Sri added.

According to the government regulation, tobacco companies should print five pictorial health warnings on their cigarette packs, covering at least 40 percent of a pack’s overall size.

These warnings show scary images of tobacco-related diseases such as mouth cancer, throat cancer and lung cancer.

Indonesia: Cigarette makers blame costs for lower profits

| April 25, 2013

Cigarette manufacturers in Indonesia blamed higher production costs and currency fluctuations for the slow-down in their business throughout 2012.

Revenues at PT Gudang Garam increased by 17.1 percent to reach IDR49.03 trillion ($5 billion). However, their spending also increased, jumping 25.6 percent to IDR39.84 trillion. The higher spending and losses from currency fluctuations ultimately saw the company book IDR4.01 trillion in net profits in 2012, an 18 percent decline from the previous year, according to a story in the The
Jakarta Post.

Another cigarette maker, PT Bentoel Internasional Investama announced that its revenues fell slightly by 2.2 percent to IDR9.85 trillion. Along with Gudang Garam, it also posted higher costs of goods sold (COGS) last year, which were up 5.5 percent to IDR8.18 trillion.

Bentoel said that it suffered IDR323.35 billion in net losses, compared to IDR306 billion in net profits in 2011. In a statement submitted to the Indonesia Stock Exchange, it attributed the net losses to the significant increase in the clove price. At the same time, it added, sales dropped as a result of higher excise duties.

Meanwhile, PT HM Sampoerna reported a 26 percent rise in revenues to IDR66.63 trillion in 2012, as a result of higher sales. Last year, it managed to sell up to 107.7 billion cigarettes, a rise of 17.4 percent from 2011.

Sampoerna’s COGS were up by almost 28 percent to IDR48.12 trillion and its net profits surged 23.3 percent to IDR9.94 trillion in 2012. The increased COGS pushed the company’s net profits-to-revenue margin down to 14.9 percent from the previous 15.3 percent in 2011.

Separately, PT Wismilak Inti Makmur reported that its revenues climbed 20.9 percent to IDR1.12 trillion from 2011, thanks to higher sales, which grew 11 percent to 2 billion cigarettes. With higher sales, the company also reported a surge in its COGS, which increased 22.6 percent to IDR814.42 billion.

However, despite recording positive growth in revenue, Wismilak suffered from lower net profits in 2012, which slumped 40.3 percent to IDR77.2 billion.

This year the government plans to increase excise duty by 8.5 percent.

According to Trust Securities analyst Reza Priyambada, overall, the cigarette makers faced similar problems throughout 2012 with increasing raw material prices and higher excise. “It was like they were ‘attacked’ from the top and from the bottom,” he said.

Philip Morris Indonesia plans new factory

| October 18, 2012

Philip Morris Indonesia plans to boost its production and export capacity, reports the Jakarta Globe. The company intends to build a new factory in West Java in 2013 that will produce non-clove cigarettes, especially Marlboros.

Philip Morris Indonesia, which employs some 200 people at its existing factory in Bekasi, also in West Java, plans to hire 100 additional workers at the new factory.

Marlboro has 4.5 percent share of the Indonesian cigarette market.