SEPTEMBER 2018

CIGARETTE & POVERTY

In Indonesia
Central Bureau of Statistics (BPS) states that cigarettes are
the second commodity with a substantial influence on the poverty line.
Cigarette consumption in Indonesian is quite high. Thus, cigarette
is included as the one of commodities to measure poverty.

Did you know?

Indonesia is one of the countries
with an extremely high number
and prevalence of smoking.

Did you know?

Cigarettes always occupy the second
position in the expenditure of the
underprivileged in Indonesia after rice,
higher than other basic needs!

A survey by BPS on March 2017 shows that the

According to the Tobacco Atlas 2018,
the prevalence of male smokers in
Indonesia in 2015 reaches 76.20%.
It means that more than three quarters
of Indonesian men are smokers!
Smoking behavior among Indonesian
adolescents increases annually.
In 2016, the prevalence of male
adolescent smokers reaches 54.8%.
It means that more than half of Indonesian
male adolescents are smokers!
highest expenditure of the underprivileged for rice
and filter cigarettes respectively are 20.11% and
11.79% in urban areas and 26.46% and 11.53% in
rural areas.
The third position is occupied by non-food
commodities, namely housing, with a percentage
of 9.01% in urban areas and 7.30% in rural areas.
It indicates that underprivileged households
are more concerned with smoking
cigarettes than meeting the needs of their
children for nutrition and education to generate
intelligent children capable to obtain decent jobs!

FA - rokok dan kemiskinan - english.indd 1 9/10/18 7:45 AM

 CIGARETTE EXCISE
IS RELATIVELY LOW
Cigarette excise in Indonesia is relatively low,
approximately 38% of the retail selling price.
This figure is considerably lower than the
recommendation by WHO, namely 66%. As
a result, cigarette price is still quite inexpensive and
affordable for the underprivileged and children.
Cigarettes as commodity subject to excise seem to
have their own privilege compared to other excisable
goods. The highest excise tariff for
tobacco products is 275% of the
basic price when using the factory
selling price or 57% when using
the retail selling price.

CIGARETTES = POVERTY TRAP Meanwhile, the highest excise tariff

for other excisable goods reaches
1,150% of the basic price when
The high prevalence of tobacco consumption using the factory selling price
has adverse social and economic consequences, or 80% when using the retail
particularly in household poverty trap and the future selling price.
development of children.

With good fulfillment of nutrition and education,

children from underprivileged families should be able
to raise their families out of poverty.

However, children tend to be powerless in decision

making in the household. Thus, their needs for
education, health, and nutritious food are
frequently neglected since the parents
prioritize cigarette consumption rather than
investing in the future development of their children.

WHAT TO DO?

One intervention to increase cigarette price to the highest

ETTE level to render them unaffordable for the underprivileged households

CIGAR E and children is the imposition of high excise on tobacco products.
B
MUST A study by the Center for Health Economics and Policy Studies

X P E N SIVE of the University of Indonesia in 2016 found that 72.30% of the 586
E respondents stated to quit smoking if the cigarette price rose to
IDR 50,000 per pack.
A study by the Center for Social Security Studies of the University
of Indonesia in May 2018 involving 1,000 respondents, 404 of whom
are smokers, found that 66% of them stated to quit smoking if the
cigarette price rose to IDR 60,000 per pack and 74% of them
stated to quit smoking if the cigarette price
rose to IDR 70,000 per pack.

Cigarettes in indonesia have the most inexpensive

price in the world and can be sold per cigarette!
Therefore #ROKOKHARUSMAHAL!
(cigarette must be expensive)

FA - rokok dan kemiskinan - english.indd 2 9/10/18 7:45 AM