Cigarette manufacturer Gudang Garam (GGRM) will raise prices of its tobacco products if the central government goes ahead with its plans to introduce another cigarette excise tax hike at the start of 2018. In the first half (H1) of 2017 GGRM recorded a 8.9% year-on-year (y/y) rise in sales to Rp40.2 trillion. This performance is in contrast to the overall performance in Indonesia’s tobacco industry which basically shows a decline since 2015 amid a series of tobacco excise tax hikes and other measures that aim at curbing the consumption of cigarettes in Indonesia (for example tougher regulations for tobacco advertisement).
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