After a news about the increasing of cigarette's price spread, many pros, and contrast opinion responds to this news. People said it is important to rise cigarettes price because it will prevent children under the age to smoke. Some others against it by using tobacco farmers and the cigarettes worker as their own shield. So how far I agree with this idea?
Actually, if you search for the news closely Indonesia Cigarettes Factory Association (GAPPRI) said that this news is just a hoax. The leader said there are some steps that should be taken if the government want to increase the price. Tobacco Comunity Movement also said by increasing the price, the farmer's life will be more devastated. Even, Ministre of Finance Sri Mulyani Indarwati said that she hasn't decided to increase the price for cigarette taxes and retail prices. She also said although she knows about the research but she said the price will be based on Revised State Budget 2017 (RAPBN 2017).
This news starts when a research from Hasbullah, a lecture from Universty of Indonesia, was released. In this research, he concludes to avoid children and poor people from using cigarettes the price should be increased to Rp 50 thousands. It means the price climb twice through third times higher than current average prices. This research was held in December 2015 - January 2016 with approximately 1000 respondents. 82 percents said they agree with the price and the rest disagree.
Increasing cigarettes prices to live healthier is not a new option in around the world. In 2014, South Korea also do the same in order to reduce smokers in its country. South Korea Government was planning to increase the price to 4500 won ( Rp 47 thousands) from 2500 won. There is also much information fromI http://cigarettesprices.strikingly.com/ website about cigarettes prices. It said that since 1965 cigarettes price has been increasing continuously. In the UK, for example, the cost of cigarettes was 8,1 euro (Rp 120 thousands), and it was 9.7 dollars (Rp 128 thousand) in Singapore. And it made Singapura as the highest among all of Asian Countries. On the same website as above, it said that cigarettes consumption per capita in Indonesia was 1085, and Indonesia was placed in the 43rd place of 185 countries.
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| http://cigarettesprices.strikingly.com/ |
We should consider increasing the price of cigarettes in order to reduce consumption of cigarettes in Indonesia. First, I need to assert that I don't think people will stop smoking just because the price has gone higher, but at least we can prevent the cigarettes from misuse. From the graph that was published by Tempo, we could see many data related to smoking habits. It said that smokers from 16-19 years old continue to grow, it was only 7.1 percent in 1995 but it increases third times higher, about 20.5 percent in 2013. Why increasing the price is so much important, it is because beginner smokers number (age 10-14 years old) was continued to grow twice higher in 2013 (18 percent) from 1995 (8.9 percent). And also, we could also see in 2011 that many poor people preferred to choose smoke (19.66 percent) rather than paying for their house accommodation (18.12 percent), gasses and electricity (18.46 percent). Data from WHO in 2013 also said that for about 500 thousands people died every day because of smoke.
But, I totally agree that increasing price of cigarettes still need more study, because there are a lot of farmers out there that will be much more devastated if the policy is applied. Not only that, some cities, like Kediri also depending on cigarettes factory taxes as their income. However, rather than stick out with current prices, the government should think seriously how to solve this problem. I don't think it is wise enough increasing the price while buying price in farmer level still low. By establishing the lower price of tobacco, the government could maintain farmer's welfare. And for cities that still depending on cigarettes factory sponsorship, they should find another option source of sponsorship like Jakarta did. After all, if the government increase the taxes approximately there will be another Rp 378.75 billions that will be added to the government budget. The government can use this money for other uses, like subsidies to farmers, food quality improvement, and also for health improvement. And we can ensure that tobacco farmers and workers life could be better.
In conclusion, I do agree about increasing the price of cigarettes in order to improve younger generation health. However, before we do that, the government should take some action and regulation to make sure that farmers and tobacco's factories worker won't be encountered another hardship. And also, The government also should coordinate with cities who still depend on tobacco factories sponsorship to find another income resources.
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