Sun, 16 May 1999

Join the crowd, sit back and suck on your cigar!

By Sadie Mah

JAKARTA (JP): Lately, it seems more people are smoking cigars in various nightspots around Jakarta. Take B.A.T.S. at the Shangri-La hotel, for instance. The old crowd of Marlboro-smoking men, high on gin and tonics, may be starting to give way to a new group of cigar-smoking patrons.

Although it's hard to imagine more people would take up this expensive habit in the middle of a recession, the kind of exposure given by some of the top hotels here does seem to suggest an emerging trend of cigar-smoking among locals. Or at least a recognition that there is a market for it.

The Mandarin Oriental Hotel, for example, decided to gauge the demands for Cuban cigars by organizing a glitzy Cuban cigar evening last Friday. "Some of our guests had been suggesting something like this be held, so we decided to do it," said Alan J. Hepburn, general manager of the hotel.

So for Rp 475,000++ each, about 60 guests enjoyed cocktails, free-flowing wine, a four-course meal and two brands of cigars -- Bolivar and Hoyo de Monterrey. The mood was that of the good life and carefree indulgence. Lots of confident laughter was heard above the fragrant smoke as the beautiful of Jakarta sucked and puffed.

After the event, Ria Leimena, the hotel's public relations director, conveyed the hotel's elation: "We are very excited about how the event turned out. And yes, it's very likely that we will be holding more cigar evenings in the future."

Some hotels have even reported an increase in cigar consumption. "Cigar sales at our hotel have increased 60 percent since a year ago," said Satrio Widjojo, food and beverage manager of the Shangri-La hotel. The Shangri-La has been offering Cuban cigars for two years at the Margeaux Restaurant and B.A.T.S., but due to increasing demands, has recently made them available also at the lobby lounge.

"If one person smokes at a table, I can almost guarantee that the others will also ask for cigars," he said.

The Borobudur Hotel is equally excited about the apparent trend. "There is definitely a cigar trend in Jakarta," said Paolo Randone, food and beverage manager. He said the hotel only started selling cigars seriously this year when it became part of the Discovery Hotels and Resorts.

"Even though cigar consumption in our hotel has dropped a little since the economic crisis, it's starting to pick up again. I really see a market for it," Randone said. "Besides, the fact that other five-star hotels are offering cigars makes it a must for us to do the same." The hotel purchased a new humidor last month and offers Cuban cigars in all their restaurants.

Kempinski Hotel started selling cigars seven months ago. "A lot of guests were asking for them, and we knew that other hotels were also providing them, so in a way, we had to do it," said Rizal Sultoni, assistant food and beverage manager for the hotel.

Even local producers are starting to recognize the market. Three months ago, kretek (clove cigarette) producer PT Djarum, which has been producing cigars for export for more than 10 years, began to retain 10 percent of its cigars for the local market. The company's cigars carry the label of Dos Hermanos, and are mostly rolled with a blend of Cuban and Brazilian tobacco. They also use leaves cultivated locally from imported Cuban seeds.

"We actually started producing Cuban cigars for the U.S. market," explained Haryanto Wiratman, the company's vice president for export. "Now there's a market in Indonesia," he said. The trade embargo imposed on Cuba by the U.S. since 1963 has made Cuban cigars a coveted commodity among Americans.

While it would seem that the increase in consumption has come from American expatriates and expatriates in general who are benefiting from the currency depreciation, some hotels say there are as many locals as there are expatriates who smoke cigars. "In our hotel, it's a 50-50 mix," said Satrio.

There are various kinds of cigars on the market with prices starting from Rp 125,000 for a pack of five. Those with lots of money, however, may spend Rp 200,000 for a single cigar. And the sales here are quite good. A retail shop manager said she sells on average about 1,200 cigars a week, even during the crisis.

The conspicuousness of cigar-smokers these days may be due to the profile of the smokers themselves. They are not the portly, old men often associated with cigar-smoking in the past. The image of the modern smoker is one of young affluence borne out of old money. And given the country's drab economic picture, the colorful lifestyle depicted by these individuals may have become an attractive distraction for some.

"Most of the locals who smoke cigars in our hotel are aged between their late 20s and 40s, educated abroad and work for multinational, especially oil, companies", said Satrio.

"Personally, I think that those who smoke cigars have not been affected by the economic crisis," he said. "If they can afford to pay more than Rp 200,000 for one cigar, they can't be affected at all." According to him, since August last year, the hotel has held several private cigar parties for customers at the Margeaux restaurant. "They were young, upper-class Indonesians who ordered expensive food, wine and cigars."

But some smokers reject the association of cigar-smoking with wealth. "It's cheaper than going to a karaoke hall and picking up girls," insisted Irman S. Joesoef, a regular at the La Casa Del Habano, a cigar lounge at the Mandarin Oriental that has become a second home for a handful of serious smokers.

"I come here and sit for a few hours, smoke a good cigar, chat with the boys, maybe play some cards, and all it costs me is the price of one cigar," he said. He said he began smoking more since the krismon began to cope with stress. Now, he smokes four cigars a day.

The La Casa is also a retail outlet and showroom for the Pacific Cigar Co. Ltd. Headquartered in Hong Kong, the company began distributing Cuban cigars in Indonesia two years ago. It remains the sole agent for all Cuban cigars in the country and distributes to 60 hotels throughout Indonesia.

Its manager, Wishnu Bintang, said the company's sales have been steady in spite of the economic crisis. Still, she is hoping for better sales after the general election.

Some believe there are sure signs that the trend is catching on. "We've seen how trends like wine-appreciation emerged in the past. What we are going through now with cigars is like what happened in the beginning when people started drinking wine in Hong Kong," said Humphrey Tay, a smoker.

Others agree. "At the moment, people are just experimenting, maybe choosing cigars that are the most popular or most expensive. In a few years' time, people will start having their own preferences," said Randone, explaining the natural progression of a trend. "It's an educational process, just like other lifestyle products," said Wishnu.

Whether the trend will take off depends a lot on where the country is going. But some believe cigar-smoking will survive even in bad times. An optimistic Randone summed up the situation: "There are two sides to a coin," he said. "When something is down, another has to go up, creating a balance."