June 13, 2010 - Until regulations prohibiting tobacco companies from sponsoring sports events, the organizers of the Indonesia Open badminton tournament are more than happy to do business with PT Djarum.
Philip Morris International (PMI), is the leading tobacco company in the country with a market share of almost 30 percent. Last year, Philip Morris’s Indonesian unit Sampoerna sold approximately 230 billion of kretek cigarettes. Sampoerna is followed by two local tobacco manufacturers Gudang Garam and Djarum, with 21.1 and 19.4 percent market share respectively. (British American Tobacco increases its market share in Indonesia, Smokers News, 6/25/2009)Directly related news briefs:
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Under a recently signed three-year deal, the cigarette company will provide the $600,000 prize money at the Indonesia Open starting next year, when the tournament is introduced as part of the inaugural Premier Series. “Through the Premier Series, we want to show the world that our country can host a tournament with substantial prize money,” Djarum director Yan Haryadi said at a news conference on Tuesday, June 8th . “It will give Indonesia prestige in the badminton community.”
Yan said that Djarum, which is sponsoring this month’s Indonesia Open Super Series (Indonesia Open at Istora Gelora Bung Karno on June 22-27), wanted to demonstrate its commitment to badminton despite what he called a growing domestic campaign against tobacco use.
Last month, the Health Ministry said it was drafting a proposal to ban cigarette companies from communicating directly with consumers, including through promotions.
“The Badminton World Federation has not issued any regulation banning us from sponsoring a tournament,” Yan said. “Should the BWF make a decision against this kind of sponsorship, then we will back out.” Handojo, chairman of the Indonesia Open’s organizing committee, said: “The BWF has guaranteed us that a cigarette company can sponsor events, at least through 2013.”
Reference: Players smelling opportunity at Open in absence of Chinese, Matheos Viktor Messakh, The Jakarta Post, 6/9/2010.
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