Cigarette production down

The production of cigarettes in Indonesia dropped by about 1.7 percent between 2015 and 2016, according to a story in Tempo

The director general of Customs and Excise Heru Pambudi said that the production of cigarettes in 2016, at 342 billion, had been down by six billion on that of 2015, 348 billion.

Heru said the reduction was in accordance with the government’s plan to reduce cigarette production and consumption.

For example, he said, the Health Ministry had attempted to limit cigarette consumption by restricting smoking in public places, such as offices and hospitals, to special smoking areas.

But while the consumption of duty-paid cigarettes has fallen, it seems as though the consumption of illicit cigarettes might have been on the rise.

The Directorate General of Customs and Excise recorded 1,474 cases involving illicit cigarettes in 2015, a figure that rose to 2,259 cases during 2016.

The Finance Minister Sri Mulyani was quoted as saying that the increasing level of illicit cigarette distribution was caused by the rise in cigarette excise tariffs and, therefore, retail prices.