Garindra, president of APVI (Indonesia Electronic Cigarette Association), said that since 2013, Indonesia's Disposable Electronic Cigarettes market has been growing at an annual rate of about 50%, and will drop by 7% in 2021 due to the epidemic. A rebound is expected this year, with a projected 50% increase. Garindra said the e-cigarette market in Southeast Asia is promising, but neighboring countries need to keep pace with Indonesia's regulatory system. Malaysia is an example, as it is characterized by a large market and weak regulation. In contrast, regulation in Indonesia is well-established, with fixed excise taxes on every product, such as heated tobacco products, and open and closed e-cigarettes. There is also a new e-liquid standard proposed to better standardize the taste, but it has not yet been implemented, because more test data and scientific research support are still needed.
When asked how China's Disposable Vape industry can help its Indonesian counterparts, Garindra provided a highly practical suggestion for all Chinese manufacturers, Garindra said that if the target market is still the US, UK, Middle East, etc., they can Set up factories in Batam, Indonesia, which is a free trade zone in Indonesia. Chinese companies can ship all their raw materials here without paying any tariffs, and then the products can be easily exported. If the target market is Indonesia, the companies can set up factories on islands including Java, and the manufacturers will face the local market directly.
Indonesian Electronic Cigarette Association Suggest Chinese Companies to Build Factories in Batam
2022 10/24