Indonesia is the fifth largest tobacco market in the world. Major tobacco companies in Indonesia include Gudang Garam, Sampoerna (Philip Morris International), Djarum, and Bentoel (British American Tobacco). These four companies dominate the Indonesian tobacco market with more than 70 percent of the total market share. In 2008, over 165 billion cigarettes were sold in Indonesia.
Indonesia is one of the few countries in the world that has not signed or ratified the WHO Framework Convention on Tobacco Control.
Smoke-free environments: The national health law prohibits smoking on public transport, in health care facilities, educational facilities, children's playgrounds, and religious places. In other types of public places and in workplaces, designated smoking areas may be provided. However, under Indonesian law, local governments must also pass corresponding implementing legislation in order for the national health law's smoke-free provisions to take effect. The national law does not set a deadline by which local governments must act, and some local governments have passed legislation while others have not.
Advertising, promotion and sponsorship: Tobacco advertising, promotion and sponsorship is generally allowed in Indonesia, with a few restrictions. However, broadcast and written media advertisements may not show cigarettes, cigarette packs, or the use of cigarettes or tobacco. Tobacco advertising on TV and radio is restricted to the hours between 21:30 and 05:00 local time.
Warning labels: The current regulations require one text warning ("smoking can cause cancer, heart attacks, impotence, and disturbances to pregnancy and fetal development") on all smokeable tobacco product packages. The warning must be displayed on one principle display area, which in practice is the back of the package. Health warnings are not required on smokeless tobacco product packages.
Tobacco taxes: Tobacco is cheap in Indonesia, and tax rates are low compared to other countries in the region. Tobacco taxes in Indonesia are below the rate recommended by the World Bank (from 65 percent to 80 percent of retail price) that is commonly present in countries with effective tobacco control policies.
Tobacco Taxes in Indonesia [summary] Based on The Economics of Tobacco and Tobacco Taxation in Indonesia by Hugh Waters, Belén Sáenz de Miera, Hana Ross and Luz Myriam Reynales Shigematsu
2004 Tobacco SourceBook produced by the Indonesia Ministry of Health Data to support a national tobacco control strategy
Government Regulation 81 (1999) regarding Pacification of Cigarettes for Health, PP 81/1991
Government Regulation 38 (2000) regarding the Control of Tobacco impact on Health, PP 38/2000
Government Regulation 19 (2003) on Tobacco Control, PP 19/2003
Jakarta - Governor Regulation 75 (2005) on Smoke-free Areas