Background
- Center of Human and Economic (CHED) Institute of Technology and Business Ahmad Dahlan Jakarta supported by The Union have monitor cigarette prices (price monitoring) in the Jabodetabek area (Jakarta – Bogor – Depok-Tangerang-Bekasi) as a data collection location.
- Jabodetabek was chosen as the data collection location assuming that cities and regencies in the Jabodetabek area have a high population density compared to other cities/regencies.
- Two sub-districts were taken for each district/city in Jabodetabek with the category of sub-district located at the center of government and the sub-district farthest from the district/city government center.
Source: Primary Data of Cigarette Price Monitoring in Jabodetabek (2021)
The number of cigarette packs collected in each city/district indicates that:
- On average, the number of cigarette packs is more than 200 packs of cigarettes, there are 10 cities/regencies (70%) above 200 packs of cigarettes monitored from 6 points of sale.
- The average distribution of the number of cigarette packs obtained in each city/regency shows that there are still wide varieties of cigarette brands that are evenly distributed in Jabodetabek.
Source: Primary Data of Cigarette Price Monitoring in Jabodetabek (2021)
Data Information on the Distribution of Cigarette Packs in Each City / Regency in Jabodetabek:
- The average cigarette sales are highest in each city/district at the point of sale of minimarkets. This pattern shows that the average buyer is from the middle and upper class and it can be possible for novice smokers, for this reason, it is essential to rearrange cigarette displays in convenience stores.
- Some cities/regencies that are geographically located in the suburbs of cigarette sales are the most at the Grocery Storesales point in the Kepulauan Seribu regency, Tangerang City, and South Tangerang.
Based on the number of cigarette packs distributed in each region, it was found that:
- The distribution of cigarette packs at gas stations is the highest in South Jakarta at 32% and the lowest in Bekasi regency at 3%.
- The distribution of cigarette packs at the Traditional Market is the highest in South Tangerang City at 27% and the lowest in West Jakarta at 7%.
- The distribution of cigarette packs at the Mini Market (Modern Retail Market) is the highest in West Jakarta (46%), and the lowest in Tangerang Regency and Bogor City (17%).
- The distribution of cigarette packs at Grocery Stores is the highest in Kepulauan Seribu Regency at 40% and the lowest in South Jakarta, which is 8%.
- The distribution of cigarette packs at the Terminal/Stasiun (Bus/Train Station) is the highest in Kepulauan Seribu Regency (19%), and the lowest in Bekasi City, which is 2%.
- The distribution of cigarette packs at Street Vendors is the highest in Bogor City (20%), and the lowest in Bekasi City at 4%.
Source: Primary Data of Cigarette Price Monitoring in Jabodetabek (2021)
The 6 most common cigarette packs from the 6 points of sale in this survey are Mini Market (Modern Retail Market) 27%; Grocery Store 18%; Gas Station 17%; Terminal/Station (Bus/Train Station) 12%; Street Vendor 11%; Traditional Market 15%.
Source: Primary Data of Cigarette Price Monitoring in Jabodetabek (2021)
Information:
- SKM: Machine Kretek Cigarettes
- SPM: White Cigarette Machine
- SKT: Hand-Rolled Clove Cigarettes
The Machine-Rolled Cigarette (SKM) type has a very large market share of 71% and is far behind the SPM and SKT types of cigarettes, possibly due to the variety of cigarette brands in the SKM type which are more widely consumed among novice smokers (young people).
Source: Primary Data of Cigarette Price Monitoring in Jabodetabek (2021)
FINDINGS
Based on the number of cigarette packs distributed in regencies/cities :
- The highest type of SKM cigarettes sold in Kepulauan Seribu Regency is 77% and the lowest in North Jakarta City is 64%.
- The highest type of HCS cigarettes sold in Central Jakarta and South Tangerang City is 16% and the lowest in South Jakarta City is 9%.
- The highest type of SPM cigarettes sold in Tangerang Regency and Tangerang City is 23% and the lowest in Kepulauan Seribu Regency is 6%.
Source: Primary Data of Cigarette Price Monitoring in Jabodetabek (2021)
FINDINGS
- There are 657 packs of cigarettes or 21% of the total whose market transaction price is below the HTP (market transaction price) of 85% from HJE (Brandrole Price) (<85%) provisions.
- The (Market Transaction Price) budget below 85% of HJE (Brandrole Price) occurred in cigarette sales in West Jakarta (73 packs) of cigarettes.
In the Regulation of the Minister of Finance of the Republic of Indonesia Number 192 / PMK / 010/2021 CHAPTER V Monitoring of Market Transaction Prices Article 16 specifies that HTP (Market Transaction Price) cannot be below 85% of the HJE (Retail Selling Price) in the provisions of the PMK annex, HJE is the selling price stated on the Banderole of cigarette packs.
DETAIL PERCENTAGE NUMBER OF CIGARETTE PACKS BASED ON TRANSACTION MARKET PRICE (HTP 85%) AND RETAIL SELLING PRICE (HJE)/BANDROLE PRICE
Source: Primary Data of Cigarette Price Monitoring in Jabodetabek (2021)
FINDINGS
- From the data of 3,156 packs of cigarettes, only 2% of the price of cigarettes is sold according to the price tag (HTP = HJE).
- Harga cigarettes sold above the price tag (>HJE) reached 21%
- 77 % (2,430 packs) of cigarette prices are sold below the price tag (<HJE)
- Of 2,430 packs of cigarettes at a price below the price tag consists of 29% or 705 packs under HTP 85% the remaining 71% (1,725 packs) are sold above HTP 85%.
- The Transaction Price of Cigarettes on the Market is not following the provisions of the Retail Selling Price (HJE) in PMK, even though it is more than the provisions above the 85% HTP.
Source: Primary Data of Cigarette Price Monitoring in Jabodetabek (2021)
FINDINGS
- Five (5) ofthe six (6) points of sale are selling single stick cigarette, and only Mini Market (Modern Retail Market) are selling cigarette in pack (100%).
- More than 50% of cigarette sales at the point of sale are sold in single stick.
- Street Vendors have the highest sales of cigarettes in single stick (85% of total sales).
RETAILER INCOME FOR CIGARETTE SALE
Source: Primary Data of Cigarette Price Monitoring in Jabodetabek (2021)
- One of the things that encourage trader (retailer) are selling cigarettes in single stick, because the profits earned are sold in single stick more than those sold per pack, this was conveyed directly by the seller through direct interviews.
Source: Primary Data of Cigarette Price Monitoring in Jabodetabek (2021)
FINDINGS
Most (90%) PHW (Pictorial Health Warning) on cigarette packs are covered with Excise Tapes.
Source: Primary Data of Cigarette Price Monitoring in Jabodetabek (2021)
FINDINGS
- In SPM (Machine White Cigarettes) type cigarettes found on ALL PACKS, there is an excise tape COVERING PHW.
- In cigarettes type SKM (Machine Kretek Cigarettes) found on 95% BUNGKUS excise tape COVERING PHW.
- SKT-type cigarettes (Hand-Rolled Clove Cigarettes) were found in 43% OF THE EXCISE TAPE PACKS COVER PHW.