Image source: Nathan Hughes Hamilton/CC BY 2.0 DEED

Key Points

• Indonesia is a country in Southeast Asia, part of the World Health Organization’s South-East Asia Region.
• It is the fourth most populous country in the world, with a population in 2022 of 275.5 million.
• Tobacco use prevalence is high, particularly amongst men. 34.5% of all adults were current tobacco users in 2021, including 65.5% of men.
• Indonesia has neither signed nor ratified the World Health Organization Framework Convention on Tobacco Control. As a non-party, it is ineligible to join the Protocol to Eliminate Illicit Trade in Tobacco Products.
• The Indonesian tobacco market is dominated by local manufacturers PT Gudang Garam Tbk and PT Djarum, as well as Philip Morris International.
• Recent tobacco industry tactics in Indonesia include the use of third parties; the targeting of youth with tobacco marketing, both at point of sale and online, as well as via event sponsorship; and sponsorship of popular sports such as badminton and football.

According to the authors of a 2023 paper, “Indonesia has a high smoking prevalence that has not diminished significantly since 1990”. This has been driven by male smoking rates which remain amongst the highest in the world.¹² It is the only country in Asia to have neither signed nor ratified the World Health Organization Framework Convention on Tobacco Control (WHO FCTC),³ and nor is there any comparable national framework for tobacco control.¹ Industry interference in policymaking is ongoing, as there is no effective legal mechanism to prevent it.⁴⁵ Smoking has long been a part of Indonesian culture, particularly for men, something which tobacco companies have exploited through aggressive marketing tactics that aim to reinforce smoking as a normal or even essential masculine behaviour.⁵⁶ This high degree of social acceptability means that the government treats the industry as a legitimate stakeholder.⁷ One key challenge, therefore, is to de-normalise tobacco use, as part of a comprehensive tobacco control plan.⁷⁸

Tobacco Use in Indonesia

The link between smoking and masculinity is deeply embedded within Indonesian culture.⁸⁹ This has been reinforced by tobacco marketing which associates tobacco products with characteristics traditionally considered masculine, such as strength, heroism and self-control.⁸⁹

In 2021, tobacco use prevalence amongst adults was 34.5%; 70.2 million adults were current users of tobacco.¹⁰ Nearly two-thirds (65.5%) of Indonesian men reported using tobacco, compared to around 3% of women.¹⁰

In 2019, nearly 20% of students aged from 13 to 15 reported tobacco use.¹¹ Around 36% of males in this age group reported current tobacco use compared to 3.5% of females.¹¹

Kreteks – cigarettes consisting of tobacco, cloves and flavourings such as chocolate, dried fruit and coffee – are by far the most popular tobacco product in Indonesia. According to government figures from 2017, kreteks accounted for more than 95% of the cigarettes sold that year.¹² The cloves provide a unique flavour and smell, and also contain eugenol, a chemical compound which reduces the harshness of the smoke.¹³ In 2021, close to 30% of all Indonesian adults – around 60 million of the country’s 70 million adult tobacco users – reported smoking kreteks.¹⁰

There were an estimated 246,000 deaths attributable to smoking in 2019, accounting for nearly 15% of all mortality in Indonesia that year.¹⁴ Research published in 2022 estimated the total cost of smoking to the Indonesian economy in 2019 at between Rp184.36 trillion (US$13 billion) and Rp410.76 trillion (US$29 billion).¹⁵ The same study found that direct healthcare costs accounted for between Rp17.9 trillion (US$1.3 billion) and Rp27.7 trillion (US$2 billion), most of which is covered by the Social Security Agency for Health, equivalent to 57-59% of total direct expenditure on healthcare.¹⁵

Tobacco in Indonesia

Market share and leading brands

In 2022, market research company Euromonitor International put the value of the Indonesian tobacco market at over US$34 billion.¹⁶ It is the second-largest cigarette market in the world.¹⁷

The market leader in Indonesia is the local kretek manufacturer PT Gudang Garam Tbk (Gudang Garam), with nearly one-third of the market in 2022.¹⁸¹⁹

Its closest competitor is Philip Morris International (PMI), with a slightly smaller share.¹⁸ PMI operates in Indonesia via its subsidiaries PT Philip Morris Indonesia and PT HM Sampoerna Tbk (Sampoerna).¹⁸²⁰ At the time of its acquisition by PMI in 2005, Sampoerna was the leading tobacco company in Indonesia.²⁰²¹

PT Djarum (Djarum), another local kretek producer, has the third-largest market share, around half that of the two leading companies.¹⁸²²

Like PMI, other transnational tobacco companies have sought to expand into Indonesia by acquiring local companies. In 2009, British American Tobacco (BAT) bought an 85% stake in PT Bentoel Internasional Investama Tbk (Bentoel) – at the time the fourth largest tobacco company in the country.²¹ In 2011, the South Korean company Korea Tobacco & Ginseng (KT&G) – which has a partnership with PMI for its newer nicotine and tobacco products – bought a controlling share of Indonesia’s sixth-largest tobacco company, PT Trisakti Purwosari Makmur.²¹²³ Similarly, Japan Tobacco International (JTI) acquired two Gudang Garam subsidiaries, Karyadibya Mahardhika and its distributor, PT Surya Mustika Nusantara, in 2017.²¹ However, BAT, JTI and KT&G each had market shares of less than 2% as of 2022.¹⁸

In 2022, the top four brands of cigarette in Indonesia were all kreteks. Gudang Garam has around one-third of the market. Djarum, A Mild and Dji Sam Soe (the latter two both PMI/Sampoerna brands) each have around a one-tenth share. Others, including PMI’s premium cigarette Marlboro, have smaller shares.²⁴

• For more information on the tobacco industry in Indonesia, see the Tobacco Supply Chain Database.

Tobacco farming and child labour

Tobacco is grown in Indonesia almost entirely on small, family-run farms, and 90% of production comes from just three provinces: East Java, Central Java, and West Nusa Tenggara.²⁵

In 2021, Indonesia reported production of over 237,000 tonnes of raw tobacco, making it the fourth largest producer in the world after China, India and Brazil.²⁶ Production has varied since 2010, from a low of less than 127,000 tonnes in 2016 to a high of nearly 270,000 tonnes in 2019. However, the overall trend in recent decades has been upwards, as shown in the graph below:

Figure 1: Tobacco production, 1980 to 2021.²⁷ Source: UN Food and Agriculture Organization/Our World in Data | CC BY

The area harvested under tobacco crop also increased by over 30% between 2000 and 2020, to nearly 220,000 hectares.²⁸

A 2017 report by the World Bank found that poverty was widespread amongst tobacco farmers in Indonesia. Nearly three-quarters of tobacco farmers were poor compared to around one-tenth of the general population.²⁹ Most tobacco-farming households received some form of government social assistance, and more than 60% reported food insecurity.²⁹

Research published in 2020 found that Indonesian tobacco farmers would be better off economically if they grew other crops or pursued alternative, non-agricultural livelihoods.³⁰ Tobacco is also vulnerable to adverse weather conditions in comparison to other crops. In 2016, a period of much higher-than-average rainfall, while non-tobacco farmers made a modest income, tobacco farmers’ income was almost zero.³⁰

Tobacco-farming households had significantly higher labour costs than those growing other crops.³¹ Tobacco farmers also used child labour, both hired and household, more frequently compared to those growing other crops.³⁰ Similarly, more children from tobacco farms missed school.³⁰ Farmers reported using child labour because tobacco growing does not usually pay enough to hire adult workers.³⁰

An investigation by The Guardian in 2018 visited the village of Beleke, on the island of Lombok, where it found almost all children above the age of four doing tobacco work during harvest season.³² This followed a report by Human Rights Watch (HRW) in 2016, which stated that thousands of children work in tobacco farming in Indonesia. HRW found children engaged in dangerous work in four Indonesian provinces, interviewing more than 130. They reported serious health and safety issues, including acute nicotine poisoning as a result of handling tobacco leaves (also known as green tobacco sickness) and contact with pesticides and other chemicals.²⁵

HRW’s interviews with tobacco farmers and traders revealed a lack of human rights due diligence in the tobacco supply chain in Indonesia, particularly regarding child labour.²⁵ The farmers and traders interviewed supplied large Indonesian and transnational companies including Gudang Garam, Sampoerna, Djarum and Bentoel.²⁵

• For more information on the tobacco industry and child labour, please see the pages on CSR: Child Labour and the Eliminating Child Labour in Tobacco-Growing Foundation (ECLT).

Tobacco and the economy

Given its high level of tobacco consumption, Indonesia has long been a net importer of tobacco leaf, despite also being a major producer.³¹ In 2022, it imported over US$617 million in raw tobacco, compared to around US$266 million in exports.³³³⁴

However, it is a net exporter of cigarettes: over US$913 million in 2022, compared to US$118 million in imports.³⁵³⁶

In 2020 the WHO reported that the contribution of the tobacco industry to the Indonesian economy was relatively small; tobacco manufacturing generates just 0.6% of total employment, while tobacco farmers represent only 1.6% of the agricultural workforce. Most families involved in tobacco growing and kretek rolling also receive some form of social assistance – meaning that the Indonesian state is essentially subsidising poorly-paid employment in the tobacco industry.³⁷

Illicit trade

A study published in 2019, which collected packs of cigarettes from respondents in Indonesia, found that 20% of the 1,440 smokers surveyed reported ever smoking illicit cigarettes. However, among the 1,201 packs researchers collected, only 20 (i.e. 1.6%) had no excise stamp, a fake excise stamp, or no graphic health warning – and hence were potentially illicit. Price appears to be a factor, with people on lower incomes more likely to purchase illicit cigarettes, though consumption of illicit cigarettes was not found to be a long-term behaviour.³⁸ However, a 2021 study estimated that the share of illicit cigarette consumption in the country increased from 5% in 2013 to 19% in 2018.³⁹

Globally, Free Trade Zones (FTZs) are well known to facilitate the illicit tobacco trade.⁴⁰ There are four FTZs in Indonesia, where cigarette production and trade are exempted from excise duties, making the price much lower. Cigarettes leak from these FTZs, becoming illicit in the process, as the packs bear no excise stamps.⁴¹ In August 2023, Indonesia’s Corruption Eradication Commission announced that a senior official from the Bintan Free Trade and Port Zone had been arrested on charges of data manipulation and receiving bribes from cigarette companies, to allow greater flows of duty-free cigarettes through the zone.⁴²

Internal industry documents suggest that historically, BAT has been involved in illicit trade in Indonesia and the broader region.⁴³ A 1994 internal BAT document points to Indonesia – along with Malaysia – as a conduit of illicit products to the Philippines.⁴⁴ A BAT-commissioned study from the 1980s also documented Indonesian consumers’ preference for its smuggled products.⁴⁵

As part of the third round of the Philip Morris International initiative PMI IMPACT, PMI is funding the Institute for Development of Economics and Finance, an Indonesian think tank, to “examine the market for NTHRPs [nicotine and tobacco harm reduction products] and how to prevent illicit trade in this growing sector, with research to include surveys and limited group discussions”.⁴⁶

• For more information on PMI IMPACT, please see the following pages: PMI IMPACT, List of Successful PMI IMPACT Applicants and Organisations linked to PMI IMPACT.

Tobacco and the environment

Indonesia is the world’s second-biggest contributor to marine plastic pollution after China, responsible for 1.29 million tonnes of debris entering the ocean annually.⁴⁷ Of this waste, cigarette butts are the most commonly-littered item.⁴⁸ The Global Center for Good Governance in Tobacco Control has estimated the cost of tobacco-related marine pollution and waste management in Indonesia at Rp49 trillion (US$3.1 billion) per year.⁴⁹

• For more information, please see the page on Tobacco and the Environment and the long read on Plastics, the Environment and the Tobacco Industry.

Roadmap to Tobacco Control

Indonesia is not a party to the WHO FCTC, and is therefore ineligible to join the Protocol to Eliminate Illicit Trade in Tobacco Products. As of 2023, there appears to be little political will either to ratify the WHO FCTC or to create a comparable national framework for tobacco control. This has led to a fragmented approach across different government departments and prevented the development of coherent tobacco control policies.¹

However, Indonesia has committed to an Association of Southeast Asian Nations (ASEAN) five-year plan on health, under which it has pledged to reaffirm collective positions against industry interference and for implementation of control measures, for both tobacco and alcohol.⁵⁰

In 2009, the passage of Law No. 36 authorised the Ministry of Health to introduce tobacco control regulation, including on tobacco advertising, promotion and sponsorship (TAPS); smoke-free spaces; and packaging and labelling of tobacco products.⁵¹ This was followed in 2012 by Indonesia’s principal tobacco control law, Government Regulation 109 (PP 109/2012).⁵¹ These laws prohibit smoking on public transport, and in educational facilities and places of worship, though other types of enclosed public spaces, including workplaces, restaurants and government facilities, may provide smoking areas.⁵²⁵³ More stringent regulations at the subnational level are permitted.⁵² As of June 2023, 456 (around 86%) of Indonesia’s 520 cities and districts had adopted smoke-free policies, though implementation remains a challenge.⁵⁴

Indonesia is one of the few countries that still permits tobacco advertising on television, though it may not be broadcast until after 9:30pm.⁵²⁵¹ While Law No. 36 and PP 109/2012 also introduced graphic health warnings (GHWs) on tobacco packaging and banned misleading terms such as “light” and “low-tar”, the law was not retroactive for tobacco products that already had these words in their branding, and other misleading features – such as colours, numbers and symbols – are still permitted.⁵²⁵¹

As of 2024, various other limitations remain. There are no restrictions on internet sales or the sale of individual cigarettes (single sticks); there is no national law regulating the sale, use, advertising, promotion, sponsorship, packaging or labelling of e-cigarettes; and tobacco industry corporate social responsibility (CSR) is still permitted.⁵¹⁵³ Cigarettes in Indonesia also remain relatively cheap. In 2022, the price of the bestselling brand of cigarettes was just over US$2.⁵³

In 2018, President Widodo issued a decree containing a list of government regulations to be revised, which included PP 109/2012.⁵⁵ Tobacco control advocates have seen this as an opportunity to push for stronger regulations, such as larger GHWs, higher excise taxes on cigarettes and a comprehensive ban on TAPS.⁵⁵ However, this process has stalled, amidst conflict between different government ministries and opposition from farmers’ associations and other groups (see section “Use of third parties”).⁵⁵ As of March 2024, the revision of PP 109/2012 had yet to advance.

For more details, please see the following websites:

• Legislation by Country/Jurisdiction – Indonesia, Tobacco Control Laws, Campaign for Tobacco-Free Kids
• Country profile – Indonesia, World Health Organization, WHO report on the global tobacco epidemic 2023

Interference in Indonesia by Tobacco Industry and Allies

Tobacco industry tactics in Indonesia include the use of third parties; the targeting of youth with tobacco marketing, both at point of sale and online, as well as via event sponsorship; and sponsorship of popular sports such as badminton and football.

Use of third parties

The tobacco industry has long used third parties and front groups to advance its interests, as a means of achieving greater credibility and overcoming public mistrust.

The Indonesian Tobacco Farmers’ Association (Asosiasi Petani Tembakau Indonesia, APTI), a lobby group, opposes the WHO FCTC, and has urged the Indonesian government not to ratify the treaty.⁵⁶ It has also frequently lobbied against increases in excise taxes on tobacco products. In 2019, APTI held a rally in front of the Ministry of Finance, to demand the repeal of an increase in excise and the retail price of cigarettes, and the revision of a regulation requiring at least 50% of the Tobacco Excise Revenue Sharing Fund to be allocated to health purposes.⁵⁷

APTI has also opposed the proposed revision to Indonesia’s main tobacco control law, PP 109/2012. In 2022, in Temanggung, a major tobacco-growing region in Central Java, APTI representatives were seen at a public event displaying banners asking the local government for support in opposing the proposal.⁵⁸ APTI also sent official letters to President Widodo opposing the revision, stating that it would negatively affect the livelihoods of people working in the tobacco sector, particularly farmers.⁵⁵

Another lobby group which has opposed of any revision of PP 109/2012 is the Indonesian Tobacco Community Alliance (Aliansi Masyarakat Tembakau Indonesia, AMTI), a coalition of tobacco industry stakeholders – including cigarette manufacturers – established in 2010.⁵⁹ It reportedly has close links to the PMI subsidiary Sampoerna.⁶⁰⁶¹ AMTI has sought to portray tobacco control as an agenda imposed on Indonesia by foreign actors who do not understand the local context – a common tobacco industry tactic in the country.⁶²⁶³

Both APTI and AMTI are affiliates of the International Tobacco Growers Association (ITGA), a global front group funded and run by the ‘Big Four’ transnational tobacco companies (TTCs), as well as two major leaf merchants.⁶⁴⁶⁵⁶⁶ Though ITGA claims to defend the interests of tobacco farmers and their communities around the world, it uses tobacco farmers as a means of opposing tobacco control regulations and protecting the interests of the TTCs.⁶⁶

Controversial marketing strategies: targeting youth

The tobacco industry has long seen young people as a vital target market; tobacco use generally starts in adolescence. In Indonesia, the mean age of smoking initiation amongst males is 18.3 years, while smoking prevalence amongst Indonesian adolescents (aged 10 to 18) increased from 7% in 2013 to 9% in 2018.⁶⁷⁶⁸

In Indonesia, there is a high concentration of tobacco retailers, high exposure to point-of-sale advertising and no restriction on the display of cigarette packs in retail outlets – all of which are associated with increased tobacco use amongst adolescents.⁵³⁶⁸⁶⁹ In addition, many retailers are located close to schools; enforcement of the ban on sales to minors is very weak; while sales of single sticks, which make smoking more accessible to young people, are still permitted.⁶⁹⁶⁸⁷⁰ Retailers therefore have an important role in recruiting new, young smokers, and maintaining growth of the market.⁶⁸

Indonesia’s incomplete TAPS regulations have also allowed the tobacco industry to switch to less regulated forms of advertising such as event sponsorship and internet marketing, often targeting young people.⁷¹

For example, the popular music festival SoundrenAline, which has been running in Indonesia since 2002, was founded by Sampoerna.⁷² Following a visit to SoundrenAline 2016, researchers reported that Sampoerna branding and the slogan “Go Ahead” were found throughout the festival site. Sampoerna A brand cigarettes were widely sold, including by cigarette girls and boys – a form of direct one-on-one marketing.⁷¹⁷³ Cigarettes that were not a Sampoerna brand were confiscated at the entrance.⁷¹ As of 2022, Sampoerna was still the sponsor of the event and owner of the registered trademark for “SoundrenAline”.⁷²

With over 111 million users, Indonesia has one of the world’s largest Instagram audiences, over half of whom are aged between 13 and 24.⁷⁴ According to the Tobacco Enforcement and Reporting Movement (TERM), as of 2023, around 70% of online tobacco marketing in Indonesia took place on Instagram.⁷⁵⁷⁶ Most of this marketing is indirect and community based. Rather than display their products directly, the tobacco companies build online communities of followers with a common interest such as music, travel or sport, as a means of improving brand visibility and indirectly promoting their products.⁷⁶⁷⁵

Controversial marketing strategies: sponsorship of popular sports

Tobacco industry sponsorship of sport is as old as professional athletic competition itself.⁷⁷ It aims to create links between pre-existing associations people may have with sports (such as fun, excitement, strength, etc.) with tobacco branding and products; promote an image of tobacco use as normal and healthy; and appeal to young people.⁷⁸

In Indonesia, TAPS has historically been very widespread in popular sports.⁷⁹ Badminton, for instance, which the New York Times has described as part of Indonesia’s “national identity”, has long been a vehicle for tobacco industry sponsorship.⁸⁰ From 2006, Djarum was the corporate sponsor of the national badminton trials for children and adolescents aged from 5 to 18.⁸¹ The trials were shown on national television, and participants were required to wear clothing which displayed the Djarum logo.⁶⁸⁸¹

Ten civil society organisations reported Djarum to the National Commission on Child Protection, arguing that the sponsorship violated Indonesia’s child protection law.⁸¹ In 2019, Djarum agreed to remove its logos from the badminton trials.⁸²⁸³ It also withdrew its sponsorship from future trials, which critics argued would undermine development of young talent. However, in 2021 the state-owned telecommunications firm Telkom replaced Djarum as sponsor.⁸¹

Djarum owns the PB Djarum badminton club in Kudus, Central Java, which has a youth academy, as well as a club in Jakarta.⁸⁰⁷⁵⁸⁴ The company also continues to market itself and its products indirectly via Djarum-associated social media accounts which focus on badminton-related content.⁷⁶⁷⁵

An investigation into tobacco marketing on social media in Indonesia, India and Mexico around the 2022 FIFA World Cup found that 92% of the football-themed tobacco marketing originated from Indonesia, with 81% being produced by Djarum alone.⁷⁹

Both Gudang Garam and Djarum, via their respective brands Intersoccer and Super Soccer, sponsored live World Cup viewing parties. Super Soccer, which describes itself as the “home of soccer fans in Indonesia”, promotes its activities on social media to hundreds of thousands of followers.⁷⁹ It developed a “Soccerphoria” event series and campaign specifically for the World Cup, which were heavily promoted across its accounts. As well as the live viewing parties, these events involved mural painting, branded clothes, and limited-edition World Cup cigarette packs designed by local artists.⁷⁹

In 2019, Djarum bought the Italian Serie B club Como 1907, via its subsidiaries SENT Entertainment Ltd and Mola TV. Mola, a television streaming service, has broadcast a reality TV series following 24 young footballers trying to succeed at Como 1907.

• For more on this topic please see the pages on Football Sponsorship and Social Media.

Relevant Links

• Indonesia factsheet, Tobacco Atlas
• Indonesia Tax Scorecard, Tobacconomics
• Dashboard Kawasan Tanpa Rokok [Smoke-Free Area Dashboard], Indonesia Ministry of Health
• Situation reports: Indonesia, Tobacco Enforcement and Reporting Movement, Vital Strategies
• Indonesia, Southeast Asia Tobacco Control Alliance
• Front Groups Indonesia, Southeast Asia Tobacco Control Alliance

Tobacco Tactics Resources

• Flavoured and Menthol Tobacco in LMICs
• Greenwashing
• Gudang Garam and sports endorsement
• Lobby Groups
• Tobacco Industry Tactics

References

The post Indonesia Country Profile appeared first on TobaccoTactics.

In 2009, several retail groups and tobacco companies operating in Hong Kong came together to establish the Tobacco Control Concern Group (TCCG).⁸⁵⁸⁶⁸⁷

TCCG has lobbied the government on tobacco control issues, and has echoed well known industry arguments against taxation, including that increased tax fuels illicit tobacco trade.⁸⁸⁸⁵

TCCG retail association members include the Coalition of Hong Kong Newspaper and Magazine Merchants.⁸⁷

Relationship with the tobacco industry

Tobacco companies reported to be part of TCCG include British American Tobacco, Philip Morris International, Hong Kong Federation of Tobacco Industries Limited, and Pacific Cigar Company.⁸⁷

Lobbying against tobacco tax increases

In 2009, TCCG lobbied the government to lower tobacco taxes, claiming that recent tax increases had failed to stop people from smoking and instead promoted the sale of illicit cigarettes, causing a drop in tobacco business.⁸⁵ However, a customs spokesperson noted that cigarette seizures had dropped, and there was no evidence of a growing trend in the sales of illicit cigarettes.⁸⁵ The tobacco industry often uses the argument that increases in tobacco tax will result in an increase in illicit trade.

In 2011, it was reported that TCCG had urged the government to reduce cigarette tax to a “more reasonable level”, stating that “Raising cigarette taxes has been proved to be an ineffective way to help people to quit smoking” and again citing a supposed risk of illicit trade.⁸⁸⁸⁵

TCCG also submitted a document to the legislative council on this issue.⁸⁶ This stated that an independent survey had found that the public “strongly opposed the raising of tobacco tax”[translation],⁸⁶ and again repeated the argument that tax increases would not prevent youth smoking, and instead would lead to increases smuggling:

“it is unpractical to push them to give up smoking by substantially raising tobacco tax…poorer students will smoke illicit cigarettes”[translation].⁸⁶

Research has shown that smoking rates in Hong Kong declined between 2009 and 2011, after tobacco tax increases in 2009.⁸⁹ Other research has shown that the industry inflated its estimates of the level of the illicit cigarette trade in Hong Kong.⁸⁹

TCCG presence on the Legislative Council Health Panel

In October 2015, Clear the Air, a tobacco control advocacy group in Hong Kong, highlighted that two TCCG consultants were sitting on the Health Panel of the Legislative Council. In a letter to the panel, Clear the Air questioned why this was permitted, given TCCG’s connection to the tobacco industry.⁸⁷

Earlier that year in May 2015, those consultants had urged the Government to consult with the tobacco industry regarding a proposal to introduce new tobacco control measures, including an increase in the size of graphic health warnings on cigarette packaging, and suggested extending the ‘grace period’ for new package design.⁸⁷⁹⁰

Tobacco Tactics Resources

• The Coalition of Hong Kong Newspaper and Magazine Merchants
• Illicit Tobacco Trade
• Countering Industry Arguments Against Plain Packaging

References

The post Tobacco Control Concern Group (TCCG) appeared first on TobaccoTactics.

The Coalition of Hong Kong Newspaper and Magazine Merchants (CHKNMM) is a retail association representing over 35,000 newsstands in Hong Kong.⁹¹ It has lobbied against tobacco control policies including tobacco tax increases and graphic health warnings.

Relationship with the tobacco industry

CHKNMM members are newspaper vendors. Many of which sell tobacco products as part of their business.⁹²

CHKNMM joined other retail groups and tobacco companies to establish the Tobacco Control Concern Group (TCCG) in 2009.⁸⁵⁸⁷ Tobacco companies and trade associations reported to be part of TCCG include British American Tobacco, Philip Morris International, Hong Kong Federation of Tobacco Industry Limited, and Pacific Cigar Company.⁸⁷

TCCG has lobbied against tobacco control policies, in particular tobacco tax increases, using the industry argument that increases in tax will result in an increase in illicit trade.⁸⁸⁸⁵

Activities

Lobbying against tax policies

In 2011, CHKNMM and TCCG lobbied against tobacco tax increases. TCCG urged the government to reduce cigarette tax to a “more reasonable level”, stating that “Raising cigarette taxes has been proved to be an ineffective way to help people to quit smoking”, and citing a supposed risk of illicit trade.⁸⁸⁸⁵ CHKNMM added “Our business has seriously shrunk since the tobacco tax increase…we observed people buying illicit cigarettes instead of actually quitting smoking”.⁸⁸

In 2023, CHKNMM again campaigned against tobacco tax increases, stating that it would not help reduce smoking rates at the expense of the vendors’ interests. It also stated that “around 20 percent of cigarette consumers convert to buy illicit tobacco”.⁹²

Research has found that previous tobacco tax increases did not lead to an increase in illicit cigarette consumption in Hong Kong,⁹³ and has noted that the tobacco industry has a history of inflating estimates of illicit trade in Hong Kong.⁹⁴

TCCG has also used this argument to oppose tobacco control policies.

• See the TCCG page for more details.

Lobbying for newer nicotine and tobacco products

In June 2018, proposals were released by the government for newer nicotine and tobacco products to be regulated in the same way as conventional tobacco products. Later that month, CHKNMM submitted a response to the proposal (not publicly available).⁹⁵⁹⁶

The government then proposed amendments and submitted the Smoking (Public Health) (Amendment) Bill 2019 to the Legislative Council. This aimed to prohibit the import, manufacture, sale, distribution and advertisement of newer products, including e-cigarettes and heated tobacco products (HTPs). In April 2019, CHKNMM made written and oral submissions to the bill (not publicly available).⁹⁷⁹⁸⁹⁶

In May 2020, CHKNMM held a press conference asking the government to allow policy relaxations that, it argued, would support an improvement in newspaper business trade. One of the requests was that heated tobacco products (HTPs) be included in the existing tobacco control framework, allowing newspaper vendors to sell these products. CHKNMM argued that a ban on HTPs would lead to an illicit market.⁹⁹

In September 2020, CHKNMM argued that changes to HTP regulations were required to increase vendor’s income, due to business being severely impacted by the COVID-19 pandemic and the smuggling of illicit cigarettes, citing a decrease in business of more than 50 percent.¹⁰⁰

The Smoking (Public Health) (Amendment) Ordinance 2021 bill, was ultimately passed on the third reading in October 2021, coming into effect August 2022.⁹⁶

Lobbying against graphic health warnings

In May 2015, the Food and Health Bureau in Hong Kong proposed new tobacco control measures, including increasing the size of graphic health warnings on cigarette packaging.⁹⁰ The chairperson of CHKNMM, reportedly met with legislators and stated in a media report “We are against how the Government has handled the issue…Without differentiation in packaging, it will become easier to manufacture illicit cigarettes, and more difficult for consumers to tell the difference.” CHKNMM also cited the implementation of plain packaging in Australia, claiming that smoking did not decline but instead allowed illicit cigarettes to flood the market,⁹⁰ although research does not support this.¹⁰¹ In July 2015, CHKNMM attended a legislative council meeting regarding bill, where it formally opposed the changes. It suggested that instead, the Administration should improve public education on the health effects of smoking.¹⁰²

Government discussions took place throughout 2016 and 2017.¹⁰³ During this time, the CHKNMM made a joint submission to the legislative council with I Smoke Alliance and the Hong Kong Smokers’ Rights Concern Group (not publicly available).¹⁰⁴ Both organisations are smokers’ rights groups which campaign against tobacco control laws.^105106107

In 2017, CHKNMM threatened to protest, and said that they would lobby officials if the government tried to go ahead with the plan to increase the size of graphic health warnings.¹⁰⁸ Ultimately the bill was successful, and the law implemented in December 2017.¹⁰⁹

Professor Judith Mackay, a Hong Kong-based senior policy adviser to the World Health Organisation (WHO) was quoted in local media:

“I’ve never, in the last three decades, seen such opposition, lobbying or filibustering of a tobacco bill in Legco…An army of tobacco executives, lawyers and their allies have descended on Hong Kong to try to obstruct, delay and prevent the legislation going through”.¹¹⁰

Smoking (Public Health) (Amendment) Bill 2005

In 2005, CHKNMM lobbied against a tobacco control bill which introduced a number of new regulations to protect the public from second hand smoke, and restrict tobacco advertising.^111112113

Tobacco Tactics Resources

• Tobacco Control Concern Group (TCCG)
• Illicit Tobacco Trade
• Countering Industry Arguments Against Plain Packaging

References

The post Coalition of Hong Kong Newspaper and Magazine Merchants appeared first on TobaccoTactics.

Background

It was previously known as Bund für Lebensmittelrecht und Lebensmittelkunde (BLL), the German Federation for Food Law and Food Sciences.¹¹⁷

As of 2023, members include around 70 associations, 250 companies, and 150 corporate and individual members.¹¹⁸

LMVD describes itself as “opinion-forming platform, service provider and consultant” for its members.¹¹⁵ It undertakes lobbying activities in both Germany and the European Union (EU).¹¹⁹¹¹⁶

Links to the tobacco industry

Tobacco industry members

LMVD is financed exclusively from its membership fees, however no figures are disclosed.¹²⁰

Members include:

• Philip Morris GmbH, a subsidiary of Philip Morris International (PMI).¹²¹¹²²
• The Association of the German Smoking Tobacco Industry (VdR). This association represents the interests of manufacturers and EU distributors of tobacco, as well as importers of cigars and cigarillos based in Germany.¹²³ Patrick Engels, Chairman of VdR, sits on LMVD’s board of trustees.¹²⁴

Although not listed as a member on LMVD’s website, as of February 2023, the Federal Association of the Tobacco Industry and Novel Products (BVTE) listed its membership of LMVD in the German lobbying register in September 2022.¹²⁵ BVTE states that it “represents and promotes the interests of the entire value chain across all smoking and vaping products as well as tobacco and nicotine products for oral use”.¹²⁶ BVTE’s members include British American Tobacco, Imperial Brands, Japan Tobacco International, and Swedish Match (now owned by PMI).¹²⁷

Activities

LMVD has regularly criticised and lobbied against the introduction of new tobacco control policies.

Against bans on tobacco advertising

In October 2000, LMVD released a statement expressing its support of a recent ruling in the European Court of Justice that blocked a directive to ban tobacco advertising and sponsorship,¹²⁸ stating “[LMVD] is again strictly against such advertising bans… A total ban on advertising legitimate products on the market is contrary to European legal systems… advertising bans cannot reduce the proportion of smokers in the population at all. Consumer information and education is a more appropriate way to enable consumers to make informed purchasing decisions”[translation].¹²⁸

Lobbied against revisions to the EU Tobacco Products Directive

The Tobacco Products Directive (TPD) regulates the manufacture, presentation and sale of tobacco products in the EU. In 2014, the EU completed the first revision of the TPD (2014/40/EU), which became applicable in the EU Member States in May 2016. Regulations included a ban on the use of characterising flavours, an increase in size of graphic health warnings, and a ban on tobacco advertising.

LMVD lobbied against the revision of the TPD on several occasions.

In December 2012, LMVD publicly opposed the proposed revisions to packaging regulations,¹²⁹ stating that:

“These are requirements that are not compatible with either the fundamental rights of consumers or those of companies. Almost standardized packaging, 75 percent of which contains warnings and leaves little space for brand names and product information, ignores consumers’ right to information and freedom of choice”[translation].¹³⁰

In February 2013, LMVD submitted a statement to the Government arguing against the draft directive. The statement noted that PMI would also be providing comments:¹³¹¹³²

“…we thank you for the opportunity to comment on the above draft. For the rest, we refer to the statements of the trade associations and the company Philip Morris who will contact you directly with their comments”.[translation]

PMI is known to have spent millions of euros on an elaborate lobbying campaign against revisions to the TPD, involving more than 160 lobbyists.

In the statement, LMVD argued against the ban on characterising flavours, and stated that introducing plain packaging and increasing the size of graphic health warnings violated EU law.

LMVD also stated that the draft directive could affect a large number of small and medium enterprises, subjecting them to “administrative and financial hurdles that are disproportionate to adequate regulation for the purpose of comprehensive health protection”[translation].¹³²

LMVD released another statement in July 2013 claiming that “With the proposed general ban on additives, the EU Commission is demonizing the use of flavourings without any scientific basis”.¹³³

It argued that scientific test criteria must be developed before the regulation of characterising flavours in tobacco products, and that its tobacco industry members would like to be involved in this process.¹³³

The World Health Organization Framework Convention on Tobacco Control (WHO FCTC) highlights the need to protect public health policies from the tobacco industry.

In November 2015, LMVD made a further submission to the government that was heavily critical of the changes, this time also citing concerns about the introduction of an advertising ban:¹³⁴

“A total ban on information and advertising for lawful products contradicts our economic system and the basic law”[translation].

• For an overview of the EU TPD Revision process and the tobacco industry’s response, see: EU Tobacco Products Directive Revision

Opposed tobacco advertising ban in Germany

In 2016, LMVD criticised a draft law that proposed a ban on all outdoor advertising of tobacco products and e-cigarettes, a regulation which was not included in the 2014 TPD revision.  In a press release LMVD stated “[LMVD] considers total bans on the advertising of legal products to adults to be a deep cut in society’s concept of freedom”.¹³⁵

In 2019, it also took part in government discussions regarding the possible extension of tobacco advertising bans.¹³⁶

Lobbying on heated tobacco

In March 2022, LMVD opposed an amendment to the TPD which proposed the withdrawal of certain regulatory exemptions for heated tobacco products.¹³⁷

LMVD claimed that including the same health warnings on HTP packaging that appear on other tobacco products would constitute misinformation to the customer. It also argued that the EU commission did not have the authority to create new product categories or change existing definitions.¹³⁸¹³⁹

Tobacco Tactics Resources:

• EU Tobacco Products Directive Revision
• Third Party Techniques

References

The post Lebensmittelverband Deutschland (Food Federation Germany) appeared first on TobaccoTactics.

The Business Association of Georgia (BAG) was established in 2009, with a stated mission of improving the business environment in Georgia by “uniting the members, in close cooperation with the authorities, international and local partners”.¹⁴⁰

As of 2022, members of BAG include around 100 holding companies, that represent over 600 businesses of varying sizes.¹⁴⁰

Relationship with the tobacco industry

Membership

Philip Morris Georgia, a subsidy of Philip Morris International (PMI), became a member of BAG in 2017.¹⁴¹

Japan Tobacco International (JTI) became a member in 2021.¹⁴¹¹⁴²

COVID-19 donation

In 2020, Philip Morris Georgia made a donation of GEL 100,000 (UK£35,500) to a COVID-19 support fund established by BAG.¹⁴³

• See the COVID-19 page for information on tobacco industry corporate social responsibility and targeted donations during the COVID-19 pandemic.

Activities

Lobbying to oppose regulations on heated tobacco products

A ban on tobacco advertising, promotion and sponsorship was introduced in Georgia in May 2018, and an outdoor display ban in September 2018.¹⁴⁴

In September 2018, BAG submitted a legislative proposal to the Healthcare Committee of the Parliament requesting that heated tobacco products (HTPs) and other newer nicotine and tobacco products be subject to fewer regulations than conventional tobacco products.¹⁴⁵¹⁴⁶ BAG also submitted the proposal to the Office of Business Ombudsman of Georgia.¹⁴⁶¹⁴⁴ The Ombudsman’s office, which reportedly often has meetings and consultations with tobacco industry representatives,¹⁴⁴ subsequently wrote a letter to Parliament supporting the proposal.¹⁴⁷ However, the proposal was ultimately dismissed by Parliament.¹⁴⁴¹⁴⁵

In January 2020, BAG submitted another legislative proposal requesting fewer regulations for HTPs.^144148149 During this time, BAG also published media reports which cited PMI’s HTP IQOS, as the reason for the request being made.¹⁵⁰

The proposal stated:

“The essence of our proposal is that new tobacco products and heating tobacco, devices and accessories intended for their consumption should not be subject to the prohibitions provided by the current legislation relating to Internet and/or mail order retailing, direct personal communications, and informational materials”[translation].¹⁵¹

The proposal was again dismissed by Parliament in February 2020.¹⁴⁴

In July 2020, when the U.S. Food and Drug Administration (FDA) authorised the marketing of IQOS,¹⁵² Legal Director of BAG, Nika Nanuashvili,¹⁵³ criticised the Parliament of Georgia’s decisions not to accept BAG’s previous legislative proposals.¹⁵⁴

In 2021, Nanuashvili contributed to a media report in which he echoed previous statements around product regulation. He also commented that smuggling rates of traditional tobacco products are high, citing the high cost of tobacco as the cause.¹⁵⁵

Plain packaging

Georgia mandated a law to introduce plain packaging to tobacco products, including HTPs, in May 2017. However, its implementation has been postponed on several occasions,¹⁵⁶ with regulations now due to enter into force in 2024.¹⁵⁷

In 2021 BAG submitted another legislative proposal regarding regulations for newer products.¹⁵⁸ Adding to previous submissions, this proposal argued against the introduction of plain packaging for HTPs. It also recommended that, for all tobacco products, new packaging regulations be postponed to 2025, and stated “Standardized packaging has failed in all markets where it has been implemented and failed to achieve its intended goals”[translation].¹⁵⁹

The proposal also stated:

“since 2017, the reform of the legislation regulating tobacco products began in the country, and on this painful path, the most difficult, radical regulations were selected… Georgia’s legislation, which is significantly stricter than EU countries, especially in terms of marketing and standardized packaging, will inevitably lead to further narrowing of organized businesses in the relevant market and indirect encouragement of illegal imports”[translation].¹⁵⁹

However, the proposal was again refused by Parliament.¹⁶⁰

After rejection of the proposal, Nanuashvili stated in a media report that plain packaging would have a negative impact on the sale of lesser-known brands and argued that plain packaging could result in an increase in illicit trade.¹⁶¹

See also Industry Arguments Against Plain Packaging

Relevant Link

• Business Association of Georgia website

TobaccoTactics Resources

• Third party technique
• A list of pages in the Georgia category

References

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