Sun, 02 Sep 2001

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.