Decree on cigarette price hike revised<\/p>\n
JAKARTA (JP): The Indonesian government has cut back price
\nincreases of cigarettes produced by small companies to give them
\na chance to survive in the tightening cigarette market.<\/p>\n
The Ministry of Finance issued a newly revised decree Monday
\nto reduce the price hike for cigarettes produced by small
\nmanufacturers to between 50 percent and 70 percent instead of the
\n60 percent and 90 percent announced early last month.<\/p>\n
The government said the decision was made to protect small and
\nvery small-scale cigarette producers from being driven out of
\nbusiness.<\/p>\n
The previous price increase was considered too high for small
\nproducers because it was feared their products would become too
\nexpensive.<\/p>\n
The new decree took effect yesterday.<\/p>\n
The newly revised decree says, for example, that companies
\nwith a production of up to 15 million cigarettes per year are
\nrequired to increase their prices by 50 percent to Rp 45 from Rp
\n30, while those producing above 15 million to 2.5 billion a year
\nare required to increase their prices by 50 percent to Rp 60 from
\nRp 40 previously.<\/p>\n
The previous decree, issued by the government on March 9,
\nstipulated that cigarette companies which produce up to 15
\nmillion were required to increase their price by 100 percent to
\nRp 60 while those with a production of above 15 million to 2.5
\nbillion were required to raise their prices also by 100 percent
\nto Rp 80 per cigarette.<\/p>\n
Price increases for companies which produce more than two
\nbillion cigarettes a year, are being maintained at the previous
\nlevels of above 100 percent.<\/p>\n
Many cigarette companies hailed the government's new decree
\nbecause it allows small cigarette producers to continue operating
\nunder this worst-hit crisis situation.<\/p>\n
The chairman of the Association of Indonesian Cigarette
\nProducers (Gapperi) Ismanu Soemiran said that the government's
\nnew revised decree showed that the government was greatly
\nconcerned with the fate of small-scale cigarette producers in the
\ncountry.<\/p>\n
The chairman of the Gapperi chapter in Malang, Herman Surjadi,
\nsaid that the government's new decree would allow small cigarette
\nproducers to survive amid the economic crisis.<\/p>\n
\"The new decree will enable small cigarette producers to
\nmaintain their market share in the country's tobacco industry,\"
\nhe said. (aly)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/decree-on-cigarette-price-hike-revised-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}