|
 The country with one of the highest smoking rates in the world does
have a national regulation in place to restrict cigarette
advertisements, including a ban on tobacco firms promoting their
products while acting as a sponsor. But it is inconsistently
enforced by regional authorities.
Cigarette makers are making the most of this, tying up with small
retailers and rewarding them for in-store promotion of products, the
anti-smoking groups said.
By mid-2016, Philip Morris-controlled PT Hanjaya Mandala Sampoerna
Tbk <HMSP.JK>, PT Gudang Garam Tbk <GGRM.JK> and Djarum Group had
partnered 513 shop-owners in four cities surrounding Jakarta, a
study by the Indonesian Public Health Association (IAKMI) shows.
Cigarette companies have stepped up "veiled promotions" following a
move by the Jakarta governor two years ago to ban all cigarette
advertising on outdoor media, IAKMI said.
"Their grip will take root even more, and the consumption of
cigarettes will spread," said Widyastuti Soerojo, head of IAMKI's
tobacco control unit.
A shop-owner in Tangerang, west of Jakarta, said as a Sampoerna
partner he has to follow the company's display requirements for its
products and is not allowed to sell other cigarette brands.
In return, Sampoerna has given him free cigarette packs, shopping
vouchers, banners and even a million rupiah ($75) to paint his shop,
he said, declining to be named as he was not authorised to speak to
media.
Cigarette advertisements are often found at small shops near
schools, making children extremely vulnerable, said Lisda Sundari,
head of the Lanterns for Children Foundation.
A shocking video of a toddler reportedly puffing up to 40 cigarettes
a day on the island of Sumatra went viral around seven years ago,
firing up anti-tobacco activists who said it underscored the problem
of underage smoking in Indonesia.
Despite rising anti-smoking sentiment in the country of 250 million
people, Indonesia's cigarette market was the second-biggest in the
world after China with 316.1 billion sticks sold last year, data
from Euromonitor International shows.
Gudang Garam and Djarum did not respond to requests for comment.
Sampoerna did not immediately provide a comment.
[to top of second column] |
INDUSTRY NEEDS ROOM TO BREATHE
Philip Morris, Sampoerna's parent company, said the overall
cigarette market in Indonesia dropped 11.6 percent in the second
quarter from a year earlier, while its market share fell to 32.8
percent from 33.4 percent.
The U.S. cigarette giant said tax-driven price increases were partly
responsible for the drop.
"We are being pressured from all sides: rising excise taxes, a
not-so-good economy, anti-tobacco movement," said Muhaimin Moeftie,
chairman of the association of Indonesian white cigarette producers.
Regulations should give the industry "room to breathe", he added.
The decision to raise cigarette excise taxes by an average of 10.5
percent this year, following an 11 percent hike in 2016, was aimed
at controlling consumption and distribution, a senior official at
the finance ministry said.
"The government is concerned about production, we hope production of
cigarettes will gradually drop," said Heru Pambudi, director-general
of customs and excise.
But Indonesia's parliament has initiated a bill which if passed into
law would cut back health warnings on packs and effectively increase
production.
Proponents of the bill say it would safeguard a vital economic
sector that employs millions and contributes nearly 10 percent of
state revenues.
"Don't call us a sunset industry," said Moeftie. "We've been
fighting for a long time. The industry must always be there."
(Reporting by Jakarta Newsroom and Eveline Danubrata, additional
reporting by Stefanno Reinard, Hidayat Setiaji and Cindy Silviana;
Editing by Ed Davies and Himani Sarkar)
[© 2017 Thomson Reuters. All rights
reserved.] Copyright 2017 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed. |
