Sampoerna up cigarette prices<\/p>\n
Bloomberg, Jakarta<\/p>\n
PT HM Sampoerna, Indonesia's second-largest cigarette maker, said
\nit increased wholesale prices on all its brands, the second rise
\nin two months.<\/p>\n
The price of its Dji Sam Soe hand-rolled clove cigarettes
\nwent up 4.3 percent to Rp 5,490 (61 U.S. cents) for a pack of
\n12, the tobacco company said in an e-mailed statement. Sampoerna
\nalso raised the price it charges distributors for nine other
\nproducts by an average rate 3.4 percent.<\/p>\n
Indonesia's government increased fuel prices, telephone and
\nelectricity tariffs in January as it reduced subsidies to cut a
\nbudget deficit it expects will reach 34.4 trillion rupiah.<\/p>\n
\"With the price increase for other utilities, the cigarette
\nprice increase will exert further pressure on already soft
\nconsumer demand,\" said Heriyanto Irawan, head of research at
\nMerrill Lynch & Co. in Jakarta. \"The sales volume will contract
\nthis year for the entire cigarette industry.\"<\/p>\n
The government raised the minimum price for cigarettes by
\nbetween Rp 40 and Rp 75 a cigarette and increased the
\nexcise tax on hand-rolled cigarettes last November to help narrow
\nits budget deficit, estimated at Rp 40.5 trillion last year
\nand Rp 34.4 trillion this year.<\/p>",
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