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Development Status of New Tobacco Consumption Market in Indonesia


Indonesia is a significant cigarette market and one of the world’s largest tobacco producers. Because the tobacco industry is so important to Indonesia’s economy, the country has always been wary of tobacco control. It is also one of the few countries that has not formally ratified the WHO Framework Convention on Tobacco Control. At the same time, Indonesia’s oversight of new tobacco products is far from perfect.

E-cigarettes are More Popular in Indonesia than heated e cigarettes

Because E-cigarettes were introduced to the Indonesian market before heated cigarettes, e-cigarettes were introduced in 2010, whereas heated cigarettes were only introduced in 2019. According to the Indonesian Development Foundation, there will be approximately 2.2 million e-cigarette users in the country by 2020.

Non-cigarette tobacco products are classified as other processed tobacco products by the Indonesian government. Snuff, chewing tobacco, e-cigarettes, and heated cigarettes are examples of these products. All other processed tobacco products are subject to a 57 percent tax.


Lower Taxes on New Tobacco

The Indonesian Development Foundation believes that the Indonesian government’s taxes on new tobacco products should be lower than those on combustible tobacco products, thereby increasing the purchasing power and convenience of Indonesian consumers for new tobacco products.


In addition to import and consumption tax regulations, Indonesia has yet to issue specific and comprehensive regulatory regulations for new tobacco products. Different regulatory agencies have different perspectives on new tobacco products, and relevant policies are not fully coordinated. The Indonesian food and drug regulator wants to ban e-cigarettes, but the Indonesian health ministry wants to regulate them in the same way that traditional tobacco products are regulated.


Purchasing Power is a Barrier to the Development of New Tobacco Products in Low- and Middle-income Countries

The Indonesian Development Foundation’s Harris Siajian believes that new tobacco products will be successful in the Indonesian market. “Indonesia has a population of over 200 million people, 52 million of whom are educated middle-class,” he said. “In the last 20 years, many poor people have undergone significant transformations and joined the ranks of the educated middle class.” This is critical for the new It is an excellent opportunity for the advancement of tobacco products.


The Indonesian middle class has been a key driver of the country’s economic development, with consumption levels increasing year after year since 2002. Product convenience, a suitable brand ambassador Sexuality and purchasing power are critical factors in the success of new tobacco products in the market.