RI Cigarette Prices More Expensive Compared to Asian Countries

Jakarta The price of cigarettes in Indonesia is still considered higher than the countries in Asia. The factor of people's purchasing power in the last five years is the reference.

This is as expressed by the Executive Director of the Center for Indonesia Taxation Analysis, Yustinus Prastowo who admitted if the price of cigarettes in Indonesia is very high.

He compares with countries such as Japan, Korea, China, Hong Kong, Australia, Singapore, Malaysia, Myanmar, and Vietnam.

The valuation is based on the affordability index measured by the Price Relative to Income (PRI) ratio, which is a ratio that takes into account purchasing power into the price affordability analysis.

"When compared to the price and calculate purchasing power, the price of Indonesian cigarettes is relatively expensive compared to other countries," he said on Friday (20/07/2018)

Therefore, according to Justin, the national cigarette industry will collapse if the price goes up again. "The tobacco products industry is now entering the sunset industry, which will affect upstream to downstream, from farmers, laborers to shoppers," he said.

Directorate General of Customs at the Ministry of Finance also said that the price of cigarettes in Indonesia is higher compared to countries in Asia. The factor of people's purchasing power in the last five years is the reference.

"If the nominal absolute is true, but if considering the purchasing power, cigarettes in Indonesia is expensive," said Director of Communications and Publication Directorate General Directorate General Deni Surjantoro some time ago.

Deni explained the government will not rashly raise the price of cigarettes. The negative impact will affect the industry sustainability. "If more than the culmination point, any increase will decrease, we are always careful to keep the policy optimum," he said.

The Director General of Customs, Heru Pambudi, previously stated that the selling price of a cigarette in Indonesia is the highest after compared with per capita income per day.

"The nominal price of cigarettes in Indonesia is relatively lower than Singapore or other developed countries, but if we compare relative to per capita income per day, the actual price of one cigarette we are among the highest," he said.