Cigarette industry boosts economy

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)