The Illicit Cigarette Trade in Indonesia

This report was written by Perkumpalan Prakarsa (The Welfare Initiative for Better Societies) for the project titled “The Illicit Cigarette Trade in Indonesia.” The report present’s Prakarsa’s findings from a primary survey of the illicit cigarette trade in Indonesia. The analysis focuses on three aspects: the magnitude and demand for illicit cigarettes, factors that affect illicit cigarette consumption, and the price elasticity of demand for substitute cigarettes. The report recommends large tax increases on tobacco products to reduce their affordability and reduce tobacco consumption in Indonesia.

The report is the basis for two policy briefs found here and here.