Resources: Industry Profiles
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).
BAT is the second largest tobacco company in the world and is dominant in sub-Saharan Africa. This report by Action on Smoking and Health documents the social, economic, health and environmental impact of BAT’s activity in Africa.
In 2005, PMI and the China National Tobacco Import and Export Group Corp. (CNTIEGC) established a 50-50 joint venture to offer a range of Chinese brands on the global market, expand the export of tobacco products and tobacco materials from China and explore other business opportunities.
The Chinese government plays conflicting roles in China’s tobacco sector, as both owner and regulator of the industry. The government is mandated to oversee the growth of the China National Tobacco Corporation (CNTC), the world’s single largest producer of cigarettes. At the same time, it has a responsibility to protect public health by reducing tobacco use and tobacco smoke exposure, according to China’s obligations under the World Health Organization’s Framework Convention on Tobacco Control (FCTC).
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.
Educación Popular en Salud (EPES) conducted a survey among Chile’s 2009 Presidential candidates to determine and publicize their tobacco control policy platforms. This report aims to contextualize the candidates’ proposals in regards to the one actor who did not respond to the survey: the tobacco industry. It reviews, in the context of the election, links to political power and limits on regulation and transparency that constitute a curtain of smoke to be dispelled.