Sampoerna Controls 35 Percent of the National Cigarette Market

HM Sampoerna continued to dominate the Indonesian cigarette industry in 2015, holding a 35 percent market share. Gudang Garam followed in second place with a 21.5 percent share, and Djarum held third place with a 19.3 percent share. These three cigarette producers controlled over 75 percent of domestic cigarette sales.

Year-on-year increases in cigarette excise taxes and the increasingly restricted public spaces for smoking did not impact the performance of large cigarette companies like HM Sampoerna and Gudang Garam. However, for smaller cigarette companies, the government's policy of raising excise taxes led to many producers going out of business.

Low education levels, low public health awareness, and the high number of children who have started smoking at a young age maintain high demand for domestically produced cigarettes. Warnings about the dangers of smoking, price increases, and the emergence of e-cigarettes have not yet reduced the purchase of conventional cigarettes.