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    Southeast Asia
     Mar 8, 2007
Page 1 of 2
Smoke gets in your eyes in Indonesia
By Duncan Graham

JAKARTA - Lawmakers pushing for tighter controls on Indonesia's rampant tobacco habit are facing heavy-duty hostility from the multibillion-dollar industry's powerful lobby groups, which to date have ensured that the country is the only one in Southeast Asia that has not signed or ratified the World Health Organization's Framework Convention on Tobacco Control.

The House of Representatives is drafting a bill to ban advertising and sponsorship by tobacco companies, ratchet up taxes on



smokes, and boost medical research on the health impacts of smoking, points based on the WHO's convention. There may be some fiddling at the edges of the law, but total success seems highly unlikely.

The proposed law is supported by 220 legislators, but they're confronting awesome opposition, including government departments that fear the loss of jobs, taxes and investment. Indonesia has the region's largest tobacco industry, employing hundreds of thousands of people and generating billions of dollars' worth of revenues.

Supporters of the industry claim that it employs as many as 5 million people, a crucial source of jobs in a country where unemployment remains stubbornly high. Independent researchers notably have not scientifically dissected that manpower figure and statistics in Indonesia are always rubbery, with those from government agencies particularly elastic. Even former president Megawati Sukarnoputri once publicly warned voters against relying on official figures.

House of Representatives member Hakim Sarimuda Pohan, who chairs the committee drafting the tobacco-control bill, has been quoted as saying new laws are needed specifically to stop children from smoking. He claimed that in the past five years there has been a 900% increase in children under 10 years old getting hooked, an extraordinary claim that has been supported by the National Commission for Child Protection. Its research shows that more than 90% of young teens are affected by late-evening smoke ads carried on mainstream television.

Professor Mike Daube, a 34-year international veteran of global anti-smoking campaigns and onetime chief executive officer of Australia's Cancer Council, has predicted a heavy rear-guard campaign by the Indonesian tobacco industry aimed at protecting its business interests as the bill approaches parliamentary debate.

"The companies [in Indonesia] will be claiming a loss of freedom of speech and that sporting events and music shows will vanish without their sponsorship," Daube said. "Our experience shows that's just not true. They'll use all the second-hand arguments that have failed elsewhere in the world."

Indonesia has some of the slackest controls on smoking in the region. Health activists are almost silent, having been crippled by punitive legal actions. They have unsuccessfully argued that tobacco-company sponsorship of television programs - including newscasts - amounted to advertising in disguise.

Tobacco-related revenues are crucial to the national finances, ranking as the third-largest revenue source. On March 1, taxes on cigarettes in Indonesia were raised by 7%, and another hike of Rp7 a stick, or less than 1 US cent per unit, is scheduled for July. Total tobacco-related tax income is expected to exceed Rp42 trillion ($4.6 billion) this year.

Yet by world standards, Indonesian cigarettes are still ridiculously cheap and taxes comparatively low. Australia, Malaysia, Thailand and Singapore impose tobacco taxes starting at 70% and rising. The top Indonesian rate is 40% - then drops according to a complex formula based on company output and manufacturing systems. Even after this year's increases, smokes in Indonesia retail for about one-fifth of the price of those sold in nearby countries.

Smoky streetscapes
The streetscapes of Indonesian cities are dominated by huge billboards promoting cigarettes. Current laws already prohibit 

Continued 1 2  


China: A smoker's paradise (jul 11, '06)

Asians kick Big Tobacco in the butt (Mar 2, '05)

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