Cigarette Affordability in Indonesia

Zheng, Rong; Marquez, Patricio V.; Ahsan, Abdillah; Hu, Xiaofen; Wang, Yang

doi:10.1596/30027

Cited by 24 publications

(19 citation statements)

References 9 publications

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“…Demand for bidi , which may be perceived as inferior goods in the tobacco market, declined as the level of per capita income in Bangladesh increased at an annual average rate of 5% or above 17 . Our observations are comparable to the shifting market shares in the Indonesian cigarette market from hand-made kreteks (the dominant tobacco product in Indonesia, which also includes cloves as a key ingredient) to machine-made kreteks 18 …”

Section: Understanding Consumption Trendssupporting

confidence: 74%

A decade of cigarette taxation in Bangladesh: lessons learnt for tobacco control

Nargis

Hussain

Goodchild

et al. 2019

Bull. World Health Organ.

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Bangladesh has achieved a high share of tax in the price of cigarettes (greater than the 75% benchmark), but has not achieved the expected health benefits from reduction in cigarette consumption. In this paper we explore why cigarette taxation has not succeeded in reducing cigarette smoking in Bangladesh. Using government records over 2006–2017, we link trends in tax-paid cigarette sales to cigarette excise tax structure and changes in cigarette taxes and prices. We analysed data on smoking prevalence from Bangladesh Global Adult Tobacco Surveys to study consumption of different tobacco products in 2009 and 2017. Drawing on annual reports from tobacco manufacturers and other literature, we examine demand- and supply-side factors in the cigarette market. In addition to a growing affordability of cigarettes, three factors appear to have undermined the effectiveness of tax and price increases in reducing cigarette consumption in Bangladesh. First, the multitiered excise tax structure widened the price differential between brands and incentivized downward substitution by smokers from higher-price to lower-price cigarettes. Second, income growth and shifting preferences of smokers for better quality products encouraged upward substitution from hand-rolled local cigarettes ( bidi ) to machine-made low-price cigarettes. Third, the tobacco industry’s market expansion and differential pricing strategy changed the relative price to keep low-price cigarettes inexpensive. A high tax share alone may prove inadequate as a barometer of effective tobacco taxation in lower-middle income countries, particularly where the tobacco tax structure is complex, tobacco products prices are relatively low, and the affordability of tobacco products is increasing.

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Section: Understanding Consumption Trendssupporting

confidence: 74%

A decade of cigarette taxation in Bangladesh: lessons learnt for tobacco control

Nargis

Hussain

Goodchild

et al. 2019

Bull. World Health Organ.

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“…In Indonesia, an LMIC, the burden of tobacco smoking has risen from 59 million in 2000 to 70 million in 2010 and 73.6 million in 2015 33 , 34 and continues to rise, increasing the financial burden due to tobacco related illnesses. The situation is compounded by the limited awareness regarding the hazards of smoking along with the minimalistic support available to quit.…”

Section: Discussionmentioning

confidence: 99%

Perceived usefulness of receiving a potential smoking cessation intervention via mobile phones among smokers in Indonesia

et al. 2020

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Background: The use of technology to support healthcare in Indonesia holds new promise in light of decreasing costs of owning mobile devices and ease of access to internet. However, it is necessary to assess end-user perceptions regarding mobile health interventions prior to its implementation. This would throw light on the acceptability of mobile phone communication in bringing about behavioral changes among the target Indonesian population. The aim of this study was to explore the perceived usefulness of receiving a potential smoking cessation intervention via mobile phones. Methods: This is an exploratory cross-sectional study involving current and former adult tobacco smokers residing in Indonesia. Online advertisement and snowballing were used to recruit respondents. Data was collected using a web-based survey over a period of 4 weeks. Those willing to participate signed an online consent and were subsequently directed to the online questionnaire that obtained demographics, tobacco usage patterns, perceived usefulness of a mobile phone smoking cessation application and its design. Results: A total of 161 people who smoked tobacco responded to the online survey. The mean age of the participants was 29.4. Of the 123 respondents, 102 were men. Prior experience with using a mobile phone for health communication (OR 3.6, P=0.014) and those willing to quit smoking (OR 5.1, P=0.043) were likely to perceive a mobile phone smoking cessation intervention as useful. A smartphone application was preferred over text messages, media messages or interactive voice response technology. Content consisting of motivational messages highlighting the methods and benefits of quitting smoking were requested. Conclusion: People who smoke in Indonesia perceived receiving a potential smoking cessation intervention via mobile phones as useful. A multi-component, personalized smartphone application was the desired intervention technique. Such an intervention developed and implemented within a public health program could help address the tobacco epidemic in Indonesia.

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“…With the increase of active smokers, especially among the younger generation, policies to control smoking have been considered ineffective in lowering the number of smokers in Indonesia 4 . The persistent rise in prevalence may be due to cigarette prices being too cheap and affordable in Indonesia 5 . Complex cigarette tax systems also create opportunities for producers to avoid taxes, contributing to affordable cigarette prices 6 .…”

Section: Introductionmentioning

confidence: 99%

Good intentions, unintended outcomes: Impact of social assistance on tobacco consumption in Indonesia

Dartanto¹,

Moeis²,

Can³

et al. 2021

Tob. Induc. Dis.

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INTRODUCTION Social assistance programs create an income effect that allows low-income groups to raise their consumption to improve their well-being. However, this may unintentionally induce an increase in their consumption of temptation goods, including tobacco. By analyzing five massive social assistance programs distributed by the government since 2007, we explore whether those programs may induce increased smoking intensity in Indonesia. METHODS This study is a quantitative study that applies a Tobit regression, Difference-in-Differences (DiD) regression, Difference regression, and two-sample t-test, using the 2017 Susenas (National Socioeconomic Survey) and the 2007 and 2014 Indonesia Family Life Survey. Estimations using sociodemographic, regional, and social assistance dummy variables are used to explore the impact of the programs on the intensity of cigarette consumption in Indonesia, simultaneously assessing the relationship between cigarette consumption and socioeconomic conditions. RESULTS Our estimations using Tobit regressions confirm that social assistance recipients consume 3.39 cigarettes per capita per week more than non-recipients. The DiD regressions on IFLS panel data show that social assistance programs significantly increase cigarette consumption by 2.8 cigarettes per capita per week. We also find that: 1) smokers have lower socioeconomic indicators than non-smokers in terms of nutrition and health and education expenditures, and 2) younger household members living with smokers have less educational attainment and higher average sick days. CONCLUSIONS There is reasonable evidence to support the hypothesis that social assistance programs in Indonesia have contributed to the greater intensity of tobacco consumption among the recipients. The findings call for policy reforms in social assistance programs to be warier with the eligibility conditions for social assistance recipients. Adding new conditions related to smoking behaviors might reduce the smoking intensity of those in low-income groups and, in the long run, might improve the effectiveness of social assistance programs in raising the socioeconomic welfare of the low-income population.

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Cigarette Affordability in Indonesia

Cited by 24 publications

References 9 publications

A decade of cigarette taxation in Bangladesh: lessons learnt for tobacco control

A decade of cigarette taxation in Bangladesh: lessons learnt for tobacco control

Perceived usefulness of receiving a potential smoking cessation intervention via mobile phones among smokers in Indonesia

Good intentions, unintended outcomes: Impact of social assistance on tobacco consumption in Indonesia

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