On October 20th, the Shenzhen Electronic Cigarette Industry Expo (IECIE) held an event in Jakarta, Indonesia at the Jakarta International Expo Center. The exhibition covered over 12,000 square meters and had nearly 100 participating companies. It was expected to attract over 10,000 attendees. 2FIRSTS, a global cooperative media of IECIE, and the strategic media partner of China Electronics Chamber of Commerce Electronic Cigarette Professional Committee, set up a newsroom at the exhibition to provide full coverage of the event.
During the exhibition, 2FIRSTS interviewed Mr. Nirwala, the Director of Compliance for the Indonesian Customs Authority, in the press room to discuss communication and interests with relevant stakeholders.
The 2FIRSTS frontline team asked Mr. Nirwala about Indonesia's import-export data and the size of the country's e-cigarette industry. According to Mr. Nirwala, the e-cigarette industry in Indonesia has experienced rapid growth from 2018 to 2021, with tax revenues increasing by 530%. He emphasized that the Indonesian government's taxation aims to protect the public from excessive e-cigarette use, while also promoting economic development in the country.
When discussing specific tax policies, Mr. Nirwala stated, "Until 2022, e-cigarettes and regular cigarettes will have the same policy. However, this year we will separate the two policies, with e-cigarettes having a new policy that is relatively friendly to distributors and brands. We will also listen to industry suggestions to ensure everyone's interests are protected.
According to Mr. Nirwala, the Indonesian e-cigarette policy will also undergo gradual adjustments. The government will consider the following aspects in the policy-making process:
The Indonesian government is currently assessing the impact of electronic cigarettes on public health as the primary factor in determining taxation policies. Other considerations include employee qualifications, factory environment, and industry size. The taxation price must strike a balance - if too low, it could lead to excessive e-cigarette use, but if too high, it could drive consumers towards the black market and negatively impact legitimate e-cigarette businesses. Therefore, the government is still weighing its options regarding taxation.
After hearing presentations from 2FIRSTS frontline staff on the regulation of electronic cigarettes in China, as well as in the UK, EU and other countries, Mr Nirwala expressed a strong interest in further communication. These presentations will also be shared with Indonesia's health and trade departments.
At the end of the interview, Mr. Nirwala expressed a warm welcome to Chinese electronic cigarette companies to invest and establish factories in Indonesia. He also mentioned that the country will be adjusting policies related to the electronic cigarette industry to balance the interests of the government, users, and electronic cigarette manufacturers.
To learn more about the IECIE Jakarta Vape Expo, please click on the featured image to access the dedicated section.
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