Tradition and Technology: Indonesia
In the tobacco industry, Indonesia is best known for its rich variety of leaf tobaccos, its characteristic clove cigarettes and its relative tolerance for smoking; the Southeast Asian nation is one of the few countries that has neither signed nor become a party to the Framework Convention on Tobacco Control.
While those characteristics still hold true, they are increasingly only part of the story, as Indonesia now also manufactures some cutting-edge new nicotine products. Attracted by the country’s rapidly growing economy, young workforce and business-friendly policies, investors have been setting up shop here to supply not only the large domestic market but also other countries in the region.
For example, in January 2023, Philip Morris International inaugurated a factory for the production of IQOS HEETS consumables in Karawang, West Java. Leading atomization companies such as Smoore, have built production facilities, as well. And in September 2023, KT&G announced the construction of a second factory in Indonesia, which in addition to traditional cigarettes is slated to produce heat-not-burn products.
The combination of heritage and forward-thinking makes Indonesia a market to watch.
Tobacco Workers to Protest in Jakarta
Lawmakers have been evaluating the country’s tobacco control laws, including those on packaging.
KT&G Steps up Investment in Indonesia
The South Korean firm will spend nearly half a billion dollars and hire about 1,000 workers in the country.
Activists Slam Indonesia’s Failure to Raise Taxes
The decision represents a step backward in the effort to fight smoking, say health advocates.
Indonesia Keeps Tax Rates
The government will also evaluate the price differences between cigarette categories, which have contributed to downtrading.
Indonesia Urged to Raise Tobacco Taxes
Cigarettes are much cheaper in the archipelago than they are in neighboring countries, say critics.
Industry Groups Push Back on Plain Packaging
More than 20 organizations sign a statement opposing Indonesia’s plans to standardize tobacco packs.
‘Excessive Tax Hike Could Spur Illicit Trade’
Indonesia’s above-inflation increase could have unintended consequences.
Indonesia Tightens Tobacco Rules
The country is raising the legal purchase age and banning sales of single cigarettes.
Sampoerna Profit Dips
The company’s results were impacted by above-inflation tax hikes and weakening consumer purchasing power in Indonesia.
Indonesia Bans Single Stick Sales
Stick sales make smoking affordable to vulnerable populations, say critics.
Smoking Down, Vaping Up Among Minors
Indonesia is intensifying efforts to prevent children using nicotine products.
New Sampoerna Boss: Workforce has Value
It is crucial for business sustainability and societal well-being, says Ivan Cahyadi.
