Cigarettes are a Burden

Cigarettes are the second largest contributor to Indonesia's poverty line, according to new data from the state Central Bureau of Statistics or BPS. Food (rice) remains the largest contributor.

This comes at a time when the government increased the cigarette tax in January this year. However, the price of cigarettes in Indonesia remain among the lowest in the world. 62% of adult males smoke according to reports, they are easy to get and there are few restrictions on where you can smoke.

The government has been struggling to cover massive deficit with the nation’s universal healthcare program despite raising premiums. But, now they will get some help as part of the new cigarette tax will be used to cover some of the costs of the health program but it's a vicious and endless circle.

The cigarette industry absorbs approximately 5.9 million workers in Indonesia. Most of them are part of manufacturing and distribution.

[*The poverty line as of mid 2019 set by BPS was Rp 440,538 (USD$31.00) per capita per month.]