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Tobacco industry in Indonesia - statistics & facts

Indonesia has one of the highest smoking rates in the world, and is one of the biggest producers of tobacco worldwide. In 2017, approximately 322.1 billion cigarettes were consumed in Indonesia, making it the largest consumer of cigarettes in the Asia Pacific region. According to a survey on regular smokers in there in 2019, curiosity was the main reason why Indonesians tried smoking cigarettes for the first time, and most smokers picked up the habit when they were between 16 and 18 years old.

Indonesian smokers tend to favor the local kretek cigarettes. Kretek is a clove cigarette that consists of tobacco, ground clove buds, clove oil as well as other spices such as cumin, cinnamon, or nutmeg. Saccharin is then added to the kretek cigarette wrapping paper to give it a sweet taste. In 2017, machine made kretek had a share of around 75 percent of the Indonesian tobacco market, compared to the five percent for white cigarettes. In 2018, Indonesia imported almost 40 million kilograms of tobacco from China to fulfil the kretek industries' need. In that same year, approximately 180 thousand tons of tobacco were produced in Indonesia. Kretek cigarettes are, however, more harmful than regular cigarettes due to a higher percentage of tar and nicotine - the average kretek cigarette has 56 milligrams of tar and 2.8 milligrams of nicotine.

The Indonesian government had always been supportive of the kretek industry and were slow to implement a functioning system of tobacco control and consumer protection. This was mainly due to the economic importance of its tobacco industry. In 2018, Indonesia's tax revenue from tobacco excise was around 160 billion Indonesian rupiah. However, in the last decade there had been some attempts to restrain smoking, such as an increase in government funding for medical research on the health impacts of smoking. The Indonesian government had also been raising the taxes on tobacco products for almost every year since 2014. However, this had not shown a significant reduction on smoking rates. According to a survey on regular smokers in Indonesia in 2019, 32 percent of the respondents claimed to smoke between ten to 15 cigarettes a day, while ten percent said that they smoked more than 20 cigarettes per day. While cigarette smoking is decreasing all over the world, Indonesia seemed to be bucking the trend.

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Tobacco industry in Indonesia

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