May 30, 2016 13:13:32
Plain cigarette packaging to put smokers off. The Health Ministry is pushing for plain packaging on all cigarettes sold in Indonesia to reduce the alarmingly high smoking rate.

Comment: Indonesia is a late-comer in terms of regulation on cigs with warnings pictorials only introduced in 2014. However, the trend is clear that Indonesia will follow other countries to restrict advertising on cigs and one of the ways is to implement plain packaging. We believe this will marginally benefit bigger players as they have much stronger brand equity. In addition, this will make things more difficult for a new player/product to enter the market. Of all the companies in Indonesia, HMSP is the one most prepared given Phillip Morris’ expertise in the more developed markets.