E-cigarettes organization advise Chinese companies to build factories in Batam
On October 20, the Shenzhen Electronic Cigarette Industry Expo (IECIE) was held at the Jakarta International Convention and Exhibition Center in Jakarta, Indonesia. The exhibition covers an area of more than 12,000 square meters with almost 100 exhibitors and is expected to attract more than 10,000 visitors.
2FIRSTS, as the global cooperative medium of IECIE and the strategic cooperative medium of the Electronic Cigarette Professional Committee of the China Electronic Chamber of Commerce, will cover the entire exhibition and bring Southeast Asia market dynamics to all practitioners of the e-cigarette industry.
At the show, 2FIRSTS set up a press conference room to exclusively interview the show's high-profile guests and industry celebrities. The first guest to be interviewed was Garindra Kartasasmita, President of the APVI (Indonesia Electronic Cigarette Association).
According to Garindra, the e-cigarette market in Indonesia has been growing at around 50 percent annually since 2013 before collapsing 7 percent in 2021 due to the pandemic. A recovery is expected this year with an expected increase of 50%. Garindra said the e-cigarette market in Southeast Asia is promising, but neighboring countries need to keep up 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 each product, such as B. heated tobacco products and open and closed e-cigarettes. A new e-liquid standard is also proposed to better regulate taste, but it has not yet been implemented due to the need for more testing data and scientific research support.
When asked how China's e-cigarette industry can help its Indonesian counterparts, Garindra made a very practical suggestion for all Chinese manufacturers. Garindra said if the target market is still the US, UK, Middle East, etc., they could set up factories in Batam, Indonesia, a free trade zone in Indonesia. Chinese companies can ship all their raw materials duty-free here and the products can then be exported without any problems. If the target market is Indonesia, the companies can create factories on islands like Java and the manufacturers face the local market directly.
With more than 1200 members including retailers, distributors, importers and manufacturers, APVI is one of the largest associations in Indonesia. In the press room, Garindra spoke about the current situation and forecast of the Indonesian e-cigarette market and some suggestions for Chinese exporters.