Based on Tobacco Economics in Indonesia. Sarah Barber, Sri Moertiningsih Adioetomo, Abdillah Ahsan, Diahhadi Setyonaluri. 2008.
Reports & Studies
International Union Against Tuberculosis and Lung Disease
This overview of the tobacco industry in Indonesia provides a list of popular tobacco brands, ways the tobacco industry advertises their products through promotions and sponsorships, and examples of corporate social responsibility public relations activities.
Indonesia’s growing cigarette market, large population, high smoking prevalence among men, and highly unregulated market, make the country an attractive business opportunity for international tobacco companies attempting to make up for falling profits in developed markets like the United States and Australia. The powerful presence and nature of transnational tobacco companies (TTCs) in Indonesia increases the threat of the tobacco industry to public health because the companies’ competitive efforts to reach young consumers and female smokers ultimately increase smoking prevalence in markets where they operate.
Kreteks dominate the tobacco market in Indonesia. Over the last four years, transnational tobacco companies (TTCs) like Philip Morris International (PMI) and British American Tobacco (BAT) have aggressively invested in Indonesia’s emerging market by acquiring local kretek manufacturers (HM Sampoerna in 2005 and Bentoel Internasional Investama in 2009, respectively).
Produced by the Ministry of Health Republic of Indonesia (March 2004).
In early April 2010, tobacco control advocates discovered that international singing star and American Idol winner Kelly Clarkson’s April 29th concert in Jakarta, Indonesia was being sponsored by an Indonesian tobacco company. Over a two day period, fans of Clarkson and advocates posted hundreds of comments on Clarkson’s Facebook page and Twitter account and sent more than 1900 e-mails to the singer’s management company asking her to drop the tobacco sponsorship. On April 22, 2010 Clarkson’s concert promoter in Indonesia announced that the LA Lights sponsorship and promotions would be removed from the concert.
At the end of 2009, tobacco industry interference was suspected when an important clause about tobacco in the Indonesian Health Bill was removed before it was signed into law. Due to the criminal nature of the deletion, tobacco control advocates called for investigations by the government and police into the government entities involved.
In July 2008, tobacco control advocates discovered that U.S. recording artist Alicia Keys’ image and music was being exploited by Philip Morris International (PMI) to sell cigarettes. Keys’ Indonesian concert was advertised as “A Mild Live Production,” A Mild being a popular Indonesian kretek cigarette brand produced by PMI’s Indonesian subsidiary, Sampoerna. After being informed of the sponsorship, Keys moved quickly to ensure that the tobacco sponsorship was removed and that her image was no longer associated with the tobacco product.