Jakarta, CNBC Indonesia – The Covid-19 pandemic and the economic slowdown that hit Indonesia have prompted cigarette manufacturers to launch new products at low prices. Not just small businesses, even large companies are busy launching their products to sell on the market.
The three big manufacturers in the country, namely PT HM Sampoerna, PT Gudang Garam and PT Djarum, are either producing cheap cigarettes or relaunching their products with less packaging.
The report from the Center for Indonesia Strategic Development Initiatives (CISDI) shows that 42% of current persistent smokers say they will reduce their smoking spending and 24% of them will switch to cheaper cigarettes.
Meanwhile, research from the University of Indonesia’s Center for Social Security Studies (PKJS UI) shows that low-income groups continue to smoke during the pandemic despite economic hardships and tend to switch to cheaper cigarettes.
One of the cheap cigarette products launched by HM Sampoerna is Marlboro Crafted Authentic. Products launched in March 2022 are sold below in the range of Rp 8,000-Rp 10,000 with 12 sticks per pack.
Cigarette industry observer Dimas Dwi Nugraha explained that the high and low prices of cigarettes are, of course, very relative for everyone.
However, when viewed from the raw materials, packaging and other factors, the price of cheap cigarettes for the Machine-made Kretek Cigarette (SKM) class is less than Rp 17,000-18,000. per package, the SPM class is in the range of Rp. 25,000 / pack, Hand White Cigarettes SPT) under Rp. 10,000 per package, and Hand Kretek Cigarettes (SKT) under Rp. 15,000.
Research from CNBC Indonesia shows that there are many cheap cigarettes that only circulated after the Covid-19 pandemic hit Indonesia.
Sampoerna has issued a small number of older cigarettes, including the Marlboro Filter Black (for 12 cigarettes the price is Rp. 20,600 per pack) and the Philip Morris Magnum 12 (Rp. 18,300 per pack).
New products launched include Marlboro Crafted Authentic (Rp 8,000-10,000 per pack) and Marlboro Advance (Rp 17.00-19,000 / pack).
Djarum has launched products such as Djarum Super Next and Djarum Wave which are priced at IDR 16,000 for 12 sticks. Djarum also issued the Djarum 76 Madu Hitam variant (Rp 12,000-13,000 per pack).
Wismilak launched Wismilak Golden ARJA at a price of 8,000-9,000 IDR per pack with 12 sticks.
Cheap cigarettes from other manufacturers are PT Nojorono Tobacco International’s Minak Djinggo Rempah (price Rp. 10,000 / pack) and Ares City Lite made by PR Sejahtera (Rp. 14,000-16,000 per pack).
Kansas American Blend (Rp 11,000-12,000 per pack), Aroma Mile (Mild) produced by Nojorono Group (Rp 15,000-16,000 per pack) and Esse Bana Pop 12 sticks produced by KT&G Group (Rp 21,000 / pack).
There are also Camel Mild Intense Blue (Rp 20,000 per pack) and Camel Mild Option Yellow Kretek (Rp 15,000-16,000 per pack) manufactured by PT. The work of Dibya Mahardhika and Hero Casual Bold from Hero Casual (Rp 13,000-16,000 per pack).
In addition to those that circulate nationally, there are several cigarettes whose circulation is very fast in certain areas.
A number of cigarettes whose sales are strong in some areas with new products after 2020 include Gudang Baru Premium (Rp 15,000 per pack), Mozza (Rp 11,000 per pack) and Super 57 Madjoe (Rp 14,000 per pack).
Various products by PT Panen Boyolali under the Lodjie brand such as Lodjie 99, Lodjie Ijo, (Rp 6,000-10,000 per pack), 169 cigarettes produced by PR Wing Bintang Wings Insan Malang (Rp 7,000-8,000 per pack), Aroma Mile (Rp 16,000 per pack) and Aroma Slim (Rp 9,000 per pack) produced by PT ATI Kudus, Sukun Executive produced by PR Sukun Kudus (Rp 19,000-21,000 per pack) and Champion Ginseng cigarettes produced by KT&G (Rp 10,000 per pack).
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(RCI / dhf)
