Changes in Indonesia’s Vape Market Policy are Not Perfect In 2018

In 2018, the changes in Indonesia’s e-cigarette market policy are not perfect

Introduce a tax policy on e-cigarettes, but in fact support the tobacco industry

In January 2018, the Indonesian government stated that it would impose a 57% tax on non-tobacco alternatives starting in the summer of 2018. Hasbullah Thabrany, an Indonesian health expert and adviser to the National Tobacco Control Committee, warned that although the tariff and consumption tax laws require the government to set taxes on these products, the government may use taxation to favor one party and said, “I believe this policy will support the tobacco industry.”

Indonesian Trade Minister, Enggartiasto Lukita, said that the development of e-cigarettes would harm the interests of tobacco growers, and those who turned to e-cigarettes should smoke traditional cigarettes.

Announced the legalization of e-cigarettes and established the Indonesian E-cigarette Festival

In July 2018, according to the Indonesian Association (APVI) news, Indonesian e-cigarette enthusiasts confirmed that the world’s first e-cigarette festival was born.

The Indonesian government officially announced the legalization of e-cigarettes, and designated July 18 as the “Indonesian E-cigarette Festival”. This can be regarded as a strong shot for the global e-cigarette market. In the future, the development of e-cigarette market in the Asia-pacific region is bound to see encouraging growth momentum.

Vaping under threat in tobacco-loving Indonesia

Vaping under threat in tobacco-loving Indonesia

Postpone the date of taxation on e-cigarettes until October

In August 2018, the Indonesian government’s financial department announced to the outside world that due to various factors, it was planned to start tax increase measures for e-cigarette products and e-liquids from July 2018, and it was scheduled to be postponed until October 2018.

According to statistics, there are currently more than 200 new tobacco product producers and traders in Indonesia.

The data shows that if the government implements the new tax rate measures for e-cigarette products in October this year, it is expected that the government will receive a tax of 200 billion rupees (about 19.5 billion yuan) from the field in 2018.

 

Displaying Chinese Vapes to the Top of the Indonesian Ministry of Commerce

Yesterday morning, 2018 Indonesia International Consumer Electronics Show opened in Jakarta, Mr. Martin, Secretary General of the Foreign Trade Department of the Ministry of Commerce of Indonesia, Dr. Wu Mingli, Chairman of the India-China Business Council, Liu Yufeng, the Vice President of the China Electronics Chamber of Commerce, Huang Guihua, executive vice president of the Electronic Commerce Committee of the China Electronic Chamber of Commerce, and Secretary-General Wei Weinuo attended the opening ceremony.

During the meeting, they briefed Mr. Martin, the Secretary General of the Foreign Trade Department of the Ministry of Commerce of Indonesia on the status of e-cigarettes in China, and consulted and exchanged on the regulatory policies on customs clearance, logistics and tax rates involved in e-cigarette exports to Indonesia.

In the afternoon, Mr. Edy, Secretary General of the Indonesian E-cigarette Association, guided everyone visit the Jakarta e-cigarette market. According to Edy, Indonesia has 80 million smokers, while the VAPE market only accounts for 2% of the market, and the market has huge room for development. At present, the trend of e-cigarettes in Indonesia is dominated by opium, and e liquid is popular among Indonesian products.

Regular Press Conference of the Ministry of Commerce

Indonesia has just officially promulgated e-cigarette law. As a large country with a population of 250 million, the e-cigarette market has great potential. Secretary-General Wei Weinuo said that we would actively follow up the market and work hard for member companies to go global.