Indonesian Cigarette Brands Seek Wholesale Import Route

The government may have to revisit its foreign investment policy for the tobacco sector in view of the increasing interest of Indonesian clove cigarette (Kretek) brands in the Indian market.

Early this week, Sampoerna International Pte Ltd, one of the top cigarette trading companies in Asia and an investment company of clove cigarette major PT Hanjaya Mandala Sampoerna Tbk of Indonesia, sought government permission to undertake cash and carry wholesale trading of clove cigarettes (Kretek, a blend of tobacco and clove) brands such as Sampoerna and Dji Sam Soe.

According to industry sources, brand strategies are also being drawn up for the clove cigarette Gudang Garam.

 

The existing policy permits 100 per cent foreign investment in the cigarette sector, but the government has taken a stand not to allow any fresh foreign investment in the sector keeping in view the possibility of a boom in the cigarettes business, and the health hazards associated with it.

But there is no specific policy for cigarette trading.