Below is a list with tagged columns and company profiles.

Today's Headlines Cigarettes

  • Is the Cigarette Manufacturing Industry Indonesia’s Biggest Sunset Industry?

    Is the Cigarette Manufacturing Industry Indonesia’s Biggest Sunset Industry?

    Stakeholders in Indonesia’s cigarette manufacturing industry were not amused when the Indonesian government announced its plans to raise minimum prices of cigarettes and to increase the excise tax on tobacco products per 1 January 2020. Reportedly, the central government plans to raise the excise tax on tobacco products by an average of 23 percent, which will then raise the minimum price of cigarettes across categories by an average of 35 percent.

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  • Tobacco Production Indonesia Highly Dependent on Weather Conditions

    Tobacco Production Indonesia Highly Dependent on Weather Conditions

    Indonesia's tobacco production, prepared from the leaves of the tobacco plant, heavily depends on weather conditions. If weather conditions are normal in 2018, then Indonesia should be able to produce up to 200,000 tons of tobacco. However, if there occurs unconducive weather (a prolonged rainy season or short dry season), then it is difficult to predict Indonesia's 2018 tobacco production.

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  • Liquid E-Cigarette Industry Indonesia Subject to 57% Excise Tax

    Liquid E-Cigarette Industry Indonesia Subject to 57% Excise Tax

    Across the world the use of the electronic cigarette (e-cigarette), a habit that is often called vaping, has risen significantly since the introduction of the modern e-cigarette in 2003 (in China). Also in Indonesia more and more people are seen using the e-cigarette, a device that tries to create the sensation of tobacco smoking.

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  • Cigarette & Tobacco Industry Indonesia: Rising Pressures in 2018?

    Cigarette & Tobacco Industry Indonesia: Rising Pressures in 2018?

    The Industry Ministry of Indonesia still targets to see some limited growth in Indonesia's cigarette industry this year despite another excise tax hike per January 2018. Abdul Rochim, Director of Food & Beverages, Tobacco Products, and Refreshments at the Industry Ministry, acknowledged that Indonesia's cigarette industry has been under pressure in recent years but remains optimistic that it will not lead to another declining performance in Indonesia's cigarette industry in 2018.

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  • Tobacco Industry Indonesia: Import Tariff to Be Raised in 2018

    Tobacco Industry Indonesia: Import Tariff to Be Raised in 2018

    Indonesia will not only raise excise duties on tobacco products per January 2018 but it was also announced that the import tariff on tobacco will be raised as well. Although the exact amount remains unknown, Indonesian Coordinating Minister for Economic Affairs Darmin Nasution confirmed the step would be taken in 2018.

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  • Indonesian Cigarette Producers Face New Tobacco Excise Tax Hike

    Indonesian Cigarette Producers Face New Tobacco Excise Tax

    At the start of 2018 the Indonesian government will again raise the excise tax on tobacco products (including cigarettes) in Indonesia. The tax will be raised by an average of 10.04 percent, effective per 1 January 2018. Traditionally, the government hikes the tobacco excise tax once per year in search of more tax revenue and to discourage consumption of tobacco products.

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  • Clove Production Indonesia Plunges, but Price Remains Stable

    Clove Production Indonesia Plunges, but Price Remains Stable

    Not only looming higher excise taxes plague Indonesia's clove farmers but also bad weather is drastically curbing clove production in 2017. I Ketut Budiman, Secretary General of the Indonesian Clove Farmers Association (APCI), said clove production may only reach 11,000 tons this year. This would be a disastrous harvest. Under normal circumstances Indonesia produces more than 100,000 tons of clove in one year.

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  • Portfolio Watch Indonesia: Cigarette Producer HM Sampoerna

    Portfolio Watch Indonesia: Cigarette Producer HM Sampoerna

    Market share of HM Sampoerna, Indonesia's largest tobacco company, has declined. In the first half of 2017 the company's market share fell to 32.9 percent from 33.4 percent in the same period one year ago. Falling market share is related to the lower production volume of the company as well as falling cigarette consumption of the Indonesian people. HM Sampoerna is controlled by global cigarette giant Philip Morris International.

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  • Tobacco Advertising on Television Banned in Indonesia?

    Tobacco Advertising on Television Banned in Indonesia?

    Commission I of Indonesia's House of Representatives (DPR) plans to revise Law No. 32/2002 on Broadcasting by adding a full ban on the advertisement of tobacco-related products on television and radio. Indonesia's tobacco industry, a massive industry in Southeast Asia's largest economy, objects to this plan. This ban would also have a big affect on government revenue (excise duties on cigarettes are a key source of government revenue) as well as on revenue generated by media institution because tobacco companies are the fifth-largest advertiser in Indonesia.

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Latest Columns Cigarettes

  • Portfolio Watch Indonesia: Gudang Garam Shares Remain Attractive

    Portfolio Watch Indonesia: Gudang Garam Shares Remain Attractive

    Shares of Gudang Garam, Indonesia's leading kretek (clove cigarettes) producer, surged 1.92 percent to IDR 79,500 on Friday (24/11). So far this year the company's shares, listed on the Indonesia Stock Exchange, have risen 24.4 percent. This is remarkable considering there are plenty of negative issues going on in Indonesia's cigarette industry.

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  • Government to Revise Indonesia's Tobacco Excise Tax Policy

    Government to Revise Indonesia's Tobacco Excise Tax Policy

    Every year Indonesia's Tax Office adjusts the excise tax on tobacco products. The adjustment is always made in consideration of the central government's tax revenue targets as well as the input of specific stakeholders (including pro-health lobby groups, or groups that defend the interests of tobacco manufacturers or farmers).

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  • Cigarette Manufacturers Indonesia Experience Tough Times

    Cigarette Manufacturers Indonesia Experience Tough Times

    Indonesian tobacco manufacturers continue to face big challenges this year amid fierce competition for market share and rising taxes (as well as other government measures that have been implemented with the aim to curb cigarette consumption, for example the setting of limits to advertisement content). Therefore, the corporate earnings of Indonesia's listed cigarette producers is expected to remain under pressure for the remainder of 2017.

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  • Matthew Myers: Indonesia Not Protected from the Dangers of Smoking

    Matthew Myers: Indonesia Not Protected from the Dangers of Smoking

    The tobacco and cigarette business in Indonesia is big business. Two tobacco companies are positioned within the top ten of largest companies listed on the Indonesia Stock Exchange (in terms of market capitalization) as there exists a huge market for cigarettes in Indonesia with some 65 percent of Indonesian men being smokers (due to Indonesia's socio-cultural context few Indonesian women smoke). Moreover, the Indonesian government seems unwilling to limit cigarette consumption (both active and passive smoking) among the population.

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  • Shareholders Approve HM Sampoerna's Stock Split & Dividend Payout

    Shareholders of the largest cigarette manufacturer of Indonesia, Hanjaya Mandala Sampoerna (HM Sampoerna), approved the company's plan to execute a 25-for-1 stock split. The move, aimed at making shares more affordable for retail investors thus boosting liquidity, will raise the company's total outstanding shares to 116.3 billion pieces. Since 2005 HM Sampoerna has been owned by international tobacco giant Philip Morris. The US-based company controls a 92.5 percent stake in HM Sampoerna.

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  • Higher Cigarette Excise; Indonesia’s Tobacco Industry in Trouble?

    Higher Cigarette Excise; Indonesia’s Tobacco Industry in Trouble?

    One of the last decisions of the Susilo Bambang Yudhoyono administration before being replaced by the new Joko Widodo-led administration was to raise the tobacco excise by an average of 8.7 percent per 1 January 2015. This excise will be applied to all tobacco-related manufactured products. The higher excise, stipulated by a Finance Ministry decree, will boost state income and will also help to curb smoking. About 65 percent of Indonesian men smoke, supported by the cheap price of a package of cigarettes.

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  • Revenue or Health: Dilemma of Curbing Indonesia's Tobacco Consumption

    Revenue or Health: the Dilemma of Curbing Indonesia's Tobacco Consumption

    Widespread cigarette consumption among Indonesians (especially men) can have a negative impact on the country’s current demographic bonus. One of Indonesia’s strongpoints in terms of economic make-up is that it has a large and young, thus potentially productive, population. Indonesians in the productive age (15 to 64 years) outnumber those that are categorized as youth (below 15 years) and elderly (over 65 years). This large productive group should provide a boost to Indonesia’s economy in the next two decades.

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  • Indonesia's Economic Growth and Top Companies in Consumer Industries

    It is no secret that Indonesia's economy has been booming in recent years and is appearing more and more on the radars of foreign investors. In the 2000s it was the commodities sector that brought much profit for Indonesian companies that were engaged in the extraction of natural resources such as coal, palm oil, and rubber. The outbreak of the global financial crisis in the late 2000s, however, ended the commodities boom abruptly, while other sectors came to the fore as Indonesia's new gold mines.

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