Indonesian Political, Business & Finance News

RI cigarette ads blow smoke at regulations

| Source: JP

RI cigarette ads blow smoke at regulations

By K. Basrie

JAKARTA (JP): Every smoker has a story about why they took up
the habit. Some point to peer pressure, others to teenage
rebellion and their surroundings. And some say cigarette
advertisements got them hooked.

But whether the ads are responsible or not, many smokers say
they have no regrets.

Ilham says cigarettes have poisoned his health but still he
sees no reason to stop after smoking since the age of 10. He said
he had his first puff when his father asked him to light his
cigarette in the kitchen.

Ranked as one of the world's biggest cigarette consumers,
along with China, India, the U.S. and Pakistan, Indonesia is home
to 42 million smokers, with 75 percent of them having started
smoking before the age of 17.

Cigarettes was one of the few sectors not affected by the
prolonged crisis which struck the country beginning in mid-1997.

In 1999, for example, a total of Rp 37 trillion, or 3 percent
of the country's GDP, was spent on cigarettes.

About 59 percent of this money went to machine-made kretek
(clove) cigarettemakers, 32 percent to the traditional hand-made
kretek producers and the remaining 9 percent to producers of
regular cigarettes.

Among the big seven of the some 770 cigarette producers in the
country are Sampoerna, Gudang Garam, Djarum and BAT (British
American Tobacco). About 600 of the producers are classified as
small-class.

According to the latest data available, this giant industry
employs some 1.6 million people, consisting of 1.25 million
tobacco farmers, 210,000 clove farmers and 150,000 plant workers.

To boost sales, cigarettemakers have been "creative" in
formulating their ads, either those designed for print or
electronic media and billboards, or those that come in the form
of pamphlets, brochures or posters.

Govt. Decree No. 38/2000, which replaced Govt. Decree No.
81/1999 on cigarette health security measures, makes it crystal
clear what is not allowed in cigarette ads.

No cigarettes, no smoking and no words referring to smoking.
An easily read standard health warning on the potential health
risks of smoking has to be placed somewhere in the ad. For TV,
ads for cigarettes are allowed to be aired only after 9:30 p.m.
Billboards, banners or pamphlets are not allowed to be placed
near certain places, like schools, houses of worship and
hospitals.

So leading cigarettemakers -- assisted by advertising firms
and associates, including advertising people from newspapers,
magazines and TV stations -- have to work extra hard to create
ads that will be accepted by the public.

A small mistake can lead to endless complaints and public
outrage, and it can take companies years to repair their broken
image.

Nowadays, there's a tendency for cigarette ads to be carefully
designed to entertain people from all walks of life.

But some cigarettemakers, including the big players, still
find it hard to obey the regulations.

It is not difficult, for example, to find ads placed near
schools. Look at the TV and you will see many cigarette ads
broadcast in the morning.

Others place cigarette ads in the form of postcards at bus
stops and large ads on city buses which are obviously aimed at
students.

Although several bodies, including the Indonesian Advertising
Companies Association and the Indonesian Consumers Foundation
have listed a number of reckless cigarette ads, the government
has not punished any of the cigarette producers or related
parties, such as the advertising agencies and the media.

Annually, the government earns over Rp 10 trillion from the
sale of cigarettes. This year, the government is targeting Rp
17.1 trillion in cigarette revenue.

"Based on the facts, the cigarette industry contributes a
great deal to the state budget and also to working-class people,"
acknowledged legislator Surya Chandra Surapaty.

About 35 percent to 40 percent of the price of a pack of
cigarettes is put aside for taxes.

The existing regulation limits punishment to manufacturers to
five years in jail and or a maximum fine of Rp 100 million who
exceed the required standards of nicotine and tar that should not
exceed 1.5 mg for nicotine and 20 mg for tar per cigarette. Ther.

Article 37 of the regulation says that cigarette makers could
be fined Rp 10 million maximum if they:

- fail to register their products,

- fail to place the health warning,

- conduct promotional activities by giving free samplers or
gifts in the form of cigarettes or other products where it is
shown that the brand is a cigarette brand.

That's all. So, with just Rp 10 million cash, a cigarette
manufacturer could simply escape from court.

"The government regulation is toothless because it only acts
as suggestions," Surya said, adding that the public interest was
put lower by the government than the interest of the business
community.

He said it was evident by the almost complete lack of
enforcement of the decree..

Up to now, almost all cigarette producers have violated the
rules in advertising their products, Surya said, but nothing has
been done to bring them into line. It appears that money does
really talk loudest amid the puff of cigarette advertisements.

View JSON | Print