Left Menu
Development News Edition

Indonesia to raise cigarette prices by more than a third at start of 2020

Reuters | Jakarta | Updated: 13-09-2019 16:40 IST | Created: 13-09-2019 16:36 IST
Indonesia to raise cigarette prices by more than a third at start of 2020
Image Credit: Pixabay

Indonesia will raise the minimum price of cigarettes by more than a third from January next year, a finance ministry spokesman said on Friday, as part of the government's efforts to reduce smoking rates. Nearly 70% of adults smoke in Indonesia, according to the World Health Organization - one of the highest rates in the world - and tobacco kills 225,720 people each year in the country or 14.7% of all deaths, mostly through cardiovascular diseases, the WHO said in a 2018 report.

The Indonesian government has been raising taxes on tobacco products almost every year since 2014 to cut consumption, but that has not had a significant impact on smoking rates. From Jan. 1 next year, the government will raise the minimum price of cigarettes across categories by an average of 35% and increase the excise tax on tobacco products by 23%, finance ministry spokesman Nufransa Wira Sakti said.

The largest cigarette companies in Indonesia include HM Sampoerna, Gudang Garam and unlisted Djarum Group. Sampoerna, Gudang Garam and Djarum did not immediately respond to requests for comment.

Jakarta kept tobacco taxes flat this year, after raising them by 10%-11% per year in the past five years. Currently, taxes on popular machine-rolled clove cigarettes range from 370 rupiahs to 590 rupiahs a stick, while the floor retail prices range from 715 rupiahs ($0.0512) to 1,120 rupiahs a stick.

The rates for filtered cigarettes, popular among younger Indonesians who dubbed them "white cigarettes", range from 355 rupiahs to 625 rupiahs a stick, while floor retail prices range from 640 rupiahs to 1,130 rupiahs a stick. Rules on tobacco taxes are often controversial in Indonesia, where big tobacco companies often say a decline in sales hurt the livelihood of farmers.

Indonesia aims to collect 172 trillion rupiahs ($12.32 billion) of revenue from tobacco excises in 2020, according to government proposals for next year's state budget which is awaiting parliamentary approval. ($1 = 13,960.0000 rupiah) ($1 = 13,960.0000 rupiah)

Also Read: Ban manufacture and sale of e-cigarettes: National Health



South Africa's COVID-19 response: Surprising outcomes or just poor data management?

South Africa has been committed to improving its health information system and shows that a robust digital has considerable scope to improve healthcare for the entire population. But the COVID-19 pandemic has highlighted that significant ga...

Post-COVID-19 Nigeria needs a robust Health Management Information System to handle high disease burden

Nigeria is among a few countries that conceptualised a health management information system HMIS in the early 90s but implementation has been a challenge till date. Besides COVID-19, the country has a huge burden of communicable and non-com...

Morocco COVID-19 response: A fragile health system and the deteriorating situation

Learning from its European neighbors, Morocco imposed drastic measures from the initial stages of the COVID-19 outbreak to try to contain its spread. The strategy worked for a few months but the cases have surged after mid-June. In this sit...

COVID-19: Argentina’s health system inefficiencies exaggerate flaws of health information system

You can recover from a drop in the GDP, but you cant recover from death, was the straightforward mindset of Argentinas President Alberto Fernndez and defined the countrys response to COVID-19. The South American nation imposed a strict...


Latest News

Sigachi Industries files draft papers with Sebi for IPO  

Hyderabad-based Sigachi Industries has filed draft offer documents with markets regulator Sebi for its initial public offer to raise about Rs 60 crore. The IPO is a fresh issuance of up to 28,41,500 shares of face value of Rs 10 each, ac...

Residential sales up 34% in Q3 vs Q2 2020, unsold inventory marginally down: JLL

MUMBAI, India, Sept. 29, 2020 Mumbai is the largest contributor to sales, accounting for 29 in Q3 2020 Q3 2020 witnessed new launches of 12,654 residential units across the seven prime markets Hyderabad dominated new launches account...

Security scenario in eastern Ladakh at uneasy "no war no peace" status: IAF chief

The present security scenario along our northern frontiers is at an uneasy no war no peace status, Chief of Air Staff Air Chief Marshal RKS Bhadauria said on Tuesday, referring to the prolonged border row with China in eastern Ladakh. In an...

Oman's new sultan quietly makes his mark as challenges loom

When Omans ruler of a half century died without an heir apparent, brief fears of turmoil ended with the quick announcement of a new sultan in this nation on the eastern edge of the Arabian Peninsula. But instead of the military rulers whose...

Give Feedback