Indonesia to curb ‘surging demand’

The Indonesian government is expected soon to issue regulations aimed at curbing the production and sale of locally-made alcoholic drinks and cigarettes, according to a story by Linda Yulisman for The Jakarta Post.

The move comes amid what is described as ‘surging demand from the domestic market’.

Panggah Susanto, director general of agriculture and chemical industries at the Industry Ministry, was quoted as saying his office would issue a regulation primarily aimed at controlling illegally produced liquor.

But another regulation would be issued to manage the production of cigarettes, including clove cigarettes, and show the country’s commitment to tobacco control.

Panggah was said not to have given details about his regulatory plans for cigarettes, and it seemed as though at least part of his proposal would be aimed at cutting production by reducing demand. Under the plans, increases in cigarette excise duties would be used to raise prices and put cigarettes beyond the financial reach of at least some smokers.

But the picture is not clear and the Industry Ministry is said to have asked the Finance Ministry to reduce the excise imposed on hand-rolled clove cigarettes to avert further factory shutdowns.