30% cigarette price rise unacceptable

In reference to a The Jakarta Post article published on June 6, 2001 titled Philip Morris eyes 20% increase in sales, which said: "When asked to comment on the government's plan to raise the retail price of cigarettes by an average 30 percent in July, Geroad said the company welcomed the move because it would enable it to maintain its profits despite the weakening rupiah."

Philip Morris Indonesia never said it welcomed the government's plan for a 30 percent price increase of cigarettes. The company's statement was that Philip Morris would follow any government decision, but the 30 percent increase in cigarette prices would not be acceptable by the industry, including Philip Morris.

DERADJAT D. KUSUMANEGARA

Public Affairs Manager

Philip Morris Indonesia

Jakarta