Statement from José Luis Castro, President and Chief Executive Officer at Vital Strategies, on media reports that Indonesia intends to increase cigarette prices by more than a third in 2020:
“Smoking is the leading cause of preventable death in Indonesia, claiming more than 217,000 lives a year. A one-third increase in cigarette prices in Indonesia, announced by a finance ministry spokesperson and reported by media outlets, including Reuters, would represent a significant win for health and economy. Tobacco taxes have been proven to reduce smoking rates, reduce uptake by youth and prevent future cancer, heart disease and other chronic conditions.
“In Indonesia, we work with people whose lives have been harmed by tobacco. We know from their experiences and from the data that cheap tobacco is a main vector for smoking initiation among Indonesian youth. Years of too-cheap cigarettes and an unscrupulous tobacco industry with too little regulation has led to increasing rates among youth. Tragically, more than 1 in 3 boys aged 13-15 smoke. A significant tax increase is a clear win-win, deterring youth from starting to smoke and encourage more current smokers to quit, while raising revenue for Indonesia’s domestic priorities. We urge the government to implement this price increase as reported.”
Tobacco’s deadly cost to Indonesia
According to The Tobacco Atlas, more than 2,677,000 children and 53,767,000 adults use tobacco in Indonesia; the proportion of tobacco users is higher than in other middle income countries. Tobacco kills 217,400 Indonesians every year and in 2010, it was the cause of 19.8 percent of deaths among adult men and 8.1 percent of deaths among adult women – higher than the average in other middle income countries. Studies indicate that Indonesian males are initiating tobacco use at younger and younger ages – many as early as twelve years old. Tobacco use is the leading risk factor for non-communicable diseases, which could cost Indonesia’s economy as much as US$4.5 trillion from 2012 to 2030, according to the World Economic Forum. Currently, excise taxes account for 49.45% of the retail price of a packet of cigarettes in Indonesia. WHO recommends that excise taxes should represent at least 70% of the retail price to deliver reductions in tobacco use.
About Vital Strategies’ work in tobacco control:
Vital Strategies works globally and in more than 40 countries to support the adoption of proven policies to reduce tobacco use. Our global team of experts use policy, advocacy and strategic communication to help governments adopt life-saving, public health “best buys” like comprehensive smoke-free laws and high tobacco taxes. Our evidence-based public education campaigns – designed to encourage quitting, delay initiation, support policy goals like compliance with smoke-free laws, and over the long term, reduce the acceptability of smoking and change attitudes about the tobacco industry – have been seen by more than 2 billion people. We partner with American Cancer Society to produce The Tobacco Atlas, (sixth ed.) the most comprehensive report on the evolving global tobacco epidemic, and support production of WHO’s MPOWER reports. Vital Strategies is a main partner in the $1 billion Bloomberg Initiative to Reduce Tobacco Use.
For more information on Vital Strategies’ work in tobacco control, please visit: https://www.vitalstrategies.org/programs/tobacco-control/
About Vital Strategies
Vital Strategies is a global health organization that believes every person should be protected by a strong public health system. We work with governments and civil society in 73 countries to design and implement evidence-based strategies that tackle their most pressing public health problems. Our goal is to see governments adopt promising interventions at scale as rapidly as possible. To find out more, please visit vstrategystage.wpengine.com or Twitter @VitalStrat.