Below is a list with tagged columns and company profiles.

Today's Headlines Cigarettes

  • Smoking in Indonesia: Government’s Mixed Tobacco Control Policies

    Smoking in Indonesia: Government’s Mixed Tobacco Control Policies

    The number of smokers in Indonesia continues to rise from year to year. Based on the latest data from Basic Health Research (Riset Kesehatan Dasar) a total of 58.8 million Indonesians aged over ten years smoked in 2013, more than ten times the population of neighbouring Singapore. In one year, these smokers lit around 225 billion cigarettes making Indonesia the third-largest tobacco consumer after China and India. More alarming, about four million of these Indonesian smokers are children between the age of 10 to 14 years.

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  • HM Sampoerna to Increase Free Float on Indonesia Stock Exchange

    HM Sampoerna to Increase Free Float on Indonesia Stock Exchange

    HM Sampoerna, Indonesia's largest tobacco producer by market capitalization (controlling about 23 percent of the Indonesian tobacco market), plans to increase its free-float shares by 5.68 percent (valued at USD $1.27 billion) in order to meet the minimum free float requirement of 7.5 percent set by the Indonesia Stock Exchange (IDX) in a regulation introduced in January 2014 and which will come into effect on 30 January 2016. By this date all listed companies on the IDX must have a minimum free float of 7.5 percent.

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  • HM Sampoerna Studying Higher Free Float on Indonesia Stock Exchange

    HM Sampoerna Studying Higher Free Float on Indonesia Stock Exchange

    Indonesian tobacco giant Hanjaya Mandala Sampoerna (HM Sampoerna), subsidiary of Philip Morris International, is studying the requirement to increase its free float ratio from (a mere) 1.82 percent to 7.50 percent. Last year, the Indonesia Stock Exchange (IDX) announced that it would force listed companies to offer at least 7.50 percent of their enlarged equity to the public. This rule will come into effect in January 2016. HM Sampoerna is the third-largest Indonesian company in terms of market capitalization (IDR 295 trillion).

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  • Indonesian Tobacco Products Subject to Excise Tax Hike in January 2015

    Starting from January 2015, Indonesian tobacco products are subject to an average tax rise of 8.7 percent. The excise tax on machine-rolled cigarettes becomes IDR 355 (USD $0.03) and on hand-rolled cigarettes IDR 290 (USD $0.02) per stick. The tax hike is implemented by the government in a move to increase state income through tax revenues. The higher excise tax is expected to have a minor effect on tobacco sales in Indonesia as retail prices for cigarettes remain among the lowest in the Southeast Asian region.

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  • Indonesia Files Complaint to WTO over Australia’s Plain Packaging Act

    Indonesia and four other countries have filed an official complaint to the World Trade Organization (WTO) over a recent new law in Australia. This law (‘2011 Tobacco Plain Packaging Act’), in effect since 1 December 2012, requires the removal of all branding (such as colours, imagery, and corporate logos) on cigarette packages. Indonesia’s Trade Ministry believes that the law violates several WTO rules, such as an agreement on trade-related aspects of intellectual property rights and an agreement on the technical barriers to trade.

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  • Tobacco Sales Banned for 24 Hours during World No Tobacco Day in Papua

    Tobacco Sales Banned for 24 Hours during World No Tobacco Day in Papua

    According to the Indonesian Ministry of Health, approximately one-third of Indonesians aged over ten years smoke (36 percent), with 67 percent of men and 4.5 percent of women smoking some form of tobacco. While Indonesia is the fifth-largest tobacco market in the world, it is the only World Health Organization (WHO) member state in Southeast Asia that has not ratified the Framework Convention on Tobacco Control (FCTC). The FCTC was developed in response to the globalisation of the tobacco industry and tobacco use.

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  • Indonesian Tobacco Giant Sampoerna Shuts down Two Cigarette Plants

    Indonesian Tobacco Giant HM Sampoerna Shuts down Two Cigarette Plants

    HM Sampoerna, Indonesia's largest tobacco company, decided to close two of its seven hand-rolled cigarette factories as the company needs restructuring due to its declining market share in the country's hand-rolled cigarettes industry. The market share fell from 30.4 percent in 2009 to 23.1 percent in 2013 as consumers are shifting to machine-rolled cigarettes. HM Sampoerna's hand-rolled cigarette plants in Jember and Lumajang (both in East Java) will be closed on 31 May 2014 and will lead to the termination of 4,900 employees.

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  • Company Profile of HM Sampoerna: Indonesia's Largest Tobacco Company

    HM Sampoerna, the largest tobacco company of Indonesia, controls about 29 percent of the Indonesian tobacco market. The company operates nine manufacturing facilities in Indonesia: two machine-made kretek production facilities as well as seven hand-rolled kretek production facilities (kretek cigarettes are the highly popular clove cigarettes, a trademark of Indonesia). The company also distributes the famous Marlboro brand on the domestic market. In 2005, Sampoerna was sold to Philip Morris, an international cigarette and tobacco giant.

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  • Statistics Indonesia: Inflation Recorded at 0.26% in February 2014

    Statistics Indonesia: Inflation Recorded at 0.26% in February 2014

    On Monday (03/03, Statistics Indonesia announced that inflation in Indonesia stood at 0.26 percent in February 2014. The largest inflationary pressures in this month were caused by higher prices of instant food products, drinks, cigarettes and tobacco. The country's February inflation rate was much lower than the 1.07 percent inflation recorded in the previous month (which was brought on by severe floods that disrupted distribution networks). Year-on-year (yoy) inflation eased to 7.75 percent from 8.22 percent in January 2014.

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  • Company Profile of Gudang Garam: a Leading Indonesian Tobacco Producer

    Gudang Garam is a leading Indonesian manufacturer of kretek cigarettes (clove cigarettes), which are the favorite choice of Indonesians. Indonesia has a large and diverse tobacco consumer market with a significant percentage of adult smokers. In 2012, it was estimated that 67 percent of Indonesian men and 5 percent of Indonesian women smoke (Indonesia has a total population of over 240 million people). In 2012, Gudang Garam had a market share of about 20 percent of the domestic cigarette market.

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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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