Cigarette industry boosts economy

JAKARTA (JP): The cigarette industry says it paid about Rp 3.58 trillion (US$1.49 billion) in tobacco duties to the government in 1996, up from Rp 3.04 trillion in 1995.

Ismanu Soemiran, chairman of Gappri -- the industry's association -- told the House of Representatives yesterday that the state budget for fiscal year 1997/1998 expected Rp 4.43 trillion in revenue from excise duties, 95 percent from cigarette makers.

Ismanu said the industry also generated government revenue through the 10 percent value-added tax on cigarette sales.

Ismanu said GAPPRI's 155 members produced 170.43 billion cigarettes in 1996, up 4.81 percent from 162.61 billion cigarettes in 1995.

Low consumption

Ismanu said that although cigarette production had increased steadily over the years, Indonesia's per capita cigarette consumption was still low.

Quoting data from the Tobacco Merchant Association, Ismanu said Indonesia's per capita cigarette consumption in 1994 was only 2.7 cigarettes per day, lower than 4.7 in Malaysia.

"Cigarette consumption in Indonesia is lower than most other developing and developed countries," he said.

Ismanu said daily per capita cigarette consumption in China was 5.7 cigarettes, United Kingdom 7 cigarettes, the United States 8.6 cigarettes and Japan 10.3 cigarettes in 1994.

Despite the big contribution the cigarette industry makes to the economy, most House Commission VIII members yesterday voiced great concern the health impact of smoking.

"We understand the contribution of cigarette industry to the country's economic development but at the same time we should think of the negative impact of smoking on health," Nafsiah Mboy, a member of the Golkar faction, said.

Robianto Koestomo, another House member, agreed with Nafsiah and said 'non smoking' areas should include public places like restaurants and airports.

"Currently a non smoking policy is only applied to hospitals," he said. (alo)