Wismilak Group

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PT Wismilak Inti Makmur Tbk, better known as Wismilak Group, is the sixth Indonesian holding company of cigarette producer PT Gelora Djaja and cigarette distributor PT Gawih Jaya, and the fourth-largest Indonesian tobacco manufacturer after Gudang Garam.

Contents

With tobacco being addictive and the single greatest cause of preventable death globally, [1] the company has had to contend with rising taxes, health warnings and tougher labeling regulations. [2]

Background

Gelora Jaja was established in Surabaya, East Java, in September 12, 1962 by Lie Koen Lie and Oei Bian Koen Hok with just 10 employees. [3] The company has been listed on the Indonesia Stock Exchange since 18 December 2012 under the symbol "WIIM". [4]

Health warnings and sales

Following the introduction of graphic health warnings on cigarette packets in Indonesia in 2014, several tobacco companies recorded declines in sales. Wismilak corporate secretary Surjanto Yasaputera had initially expressed hope the company would remain on target to increase sales by 20% to 25% in 2014. [5] Wismilak's sales reportedly fell 15.7%, or Rp.760.7 billion (US$57 million), year on year from January to July 2017. [6]

Products

Hand-rolled clove cigarettes: Wismilak Special, Wismilak Dirgha, Wismilak Satya, Galan Kretek, Galan Prima,

Hand-rolled clove slim cigarettes: Wismilak Slim, Galan Slim

Machine-made full flavor clove cigarettes: Wismilak Filter, Wismilak Diplomat, Galan Filter, Galan International

Machine-made light mild clove cigarettes: Galan Mild, Wismilak Diplomat Mild, Wismilak Diplomat Mild Menthol, Wismilak Diplomat Impact, Wismilak Diplomat Evo, Fun Mild

Cigars: Wismilak Premium Cigar

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Rolling paper Paper used for making cigarettes

Rolling paper is a specialty paper used for making cigarettes. Rolling papers are packs of several cigarette-size sheets, often folded inside a cardboard wrapper. They are also known as 'blanks', which are used to encase cannabis. It typically folded into different dimensions, while the rolling paper may be flavoured in varieties including fruity flavourings.

Cigarillo

A cigarillo is a short, narrow cigar. Unlike cigarettes, cigarillos are wrapped in tobacco leaves or brown, tobacco-based paper. Cigarillos are smaller than regular cigars but usually larger than cigarettes. Cigarillos are usually made without filters, and are meant to be smoked like a cigar and not inhaled.

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PT Perusahaan Rokok Tjap Gudang Garam Tbk, trading as PT Gudang Garam Tbk, is an Indonesian cigarette company, best known for its kretek products. It is Indonesia's second-largest tobacco manufacturer, with a market share of about 20%. The company was founded on 26 June 1958 by Tjoa Ing Hwie, who changed his name to Surya Wonowidjojo. In 1984, control of the company was passed to Wonowidjojo's son, Cai Daoheng, who subsequently became the richest man in Indonesia. Halim headed the company until his death at the age of 60 in 2008.

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Sampoerna Indonesian tobacco company

PT Hanjaya Mandala Sampoerna Tbk, commonly known as Sampoerna, is an Indonesian tobacco company owned by Philip Morris International. Sampoerna is the largest Indonesian tobacco company, ahead of Gudang Garam, Djarum, and Bentoel Group. It produces kretek-type clove cigarettes. A typical brand is Sampoerna 'A' Mild, a filter cigarette in white paper.

PT Djarum is an Indonesian kretek brand/manufacturer founded on 21 April 1951 by Oei Wie Gwan in Kudus, Central Java. It produces dozens of domestic and international brands. Djarum Black, Super, and L.A. Lights are among the popular ones. The company owns the PB Djarum, a professional badminton club and sponsored the Liga 1, nation's top football league from 2005 to 2011. It has non-cigarette business lines in technology, banking and beverages.

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Family Smoking Prevention and Tobacco Control Act

The Family Smoking Prevention and Tobacco Control Act, is a federal statute in the United States that was signed into law by President Barack Obama on June 22, 2009. The Act gives the Food and Drug Administration the power to regulate the tobacco industry. A signature element of the law imposes new warnings and labels on tobacco packaging and their advertisements, with the goal of discouraging minors and young adults from smoking. The Act also bans flavored cigarettes, places limits on the advertising of tobacco products to minors and requires tobacco companies to seek FDA approval for new tobacco products.

Plain tobacco packaging Legally mandated packaging of tobacco products without any brand imagery

Plain tobacco packaging, also known as generic, neutral, standardised or homogeneous packaging, is packaging of tobacco products, typically cigarettes, without any branding, including only the brand name in a mandated size, font and place on the pack, in addition to the health warnings and any other legally mandated information such as toxic constituents and tax-paid stamps. The appearance of all tobacco packs is standardised, including the colour of the pack.

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Cigarette packets in Australia

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Tobacco Industry is a road map of the regulations relating to all tobacco products in Indonesia. Tobacco Industry (TI) contains guidelines and industry classification and the products produced by the tobacco industry in Indonesia, including regulations, policies ribbon and excise, tobacco industry strategies, so on and so forth. Tobacco Industry was first coined by the Directorate General of Agro and Chemical Industry Department in 2009. Tobacco Industry has a significant role for state revenue through taxes and excise, employments, and protection against multiple impacts of tobacco farmers and others. The development of the TI also consider public health in addition to concern on, so that the industry can grow well. TP is a labor-intensive industry, so to the present of TI and its association with upstream form the procurement of raw materials, particularly tobacco, cloves, and other industries are potential labor-absorbing industrial.

Regulation of nicotine marketing

As nicotine is highly addictive, marketing nicotine-containing products is regulated in most jurisdictions. Regulations include bans and regulation of certain types of advertising, and requirements for counter-advertising of facts generally not included in ads. Regulation is circumvented using less-regulated media, such as Facebook, less-regulated nicotine delivery products, such as e-cigarettes, and less-regulated ad types, such as industry ads which claim to discourage nicotine addiction but seem, according to independent studies, to promote teen nicotine use.

References

  1. WHO Report on the Global Tobacco Epidemic, 2008: the MPOWER package (PDF). Geneva: World Health Organization. 2008. ISBN   978-92-4-159628-2. Archived from the original (PDF) on March 8, 2008.
  2. Amin, Khoirul (4 May 2015). "Another year, another burden for cigarette makers". The Jakarta Post. Retrieved 11 April 2018.
  3. "Setengah abad bertahan di bisnis rokok". Kontan.co.id. 24 November 2012. Retrieved 11 April 2018.
  4. "Indonesia Stock Exchange". Indonesia Stock Exchange. Retrieved 2018-05-01.
  5. Nangoy, Fransiska (24 June 2014). "Indonesia rolls out graphic health warnings on cigarette packs". Reuters. Retrieved 11 April 2018.
  6. Cook, Erin (12 September 2017). "Sin Tax Says 'Put Down the Smokes'". Indonesia Expat. Retrieved 11 April 2018.