Jump to full article: The Wall Street Journal Interactive Edition, 2009-07-02
Intro: Indonesian Industry Minister Fahmi Idris said Thursday that he will propose closing the cigarette industry for new foreign direct investment in order to protect existing producers.
"The ban will be directed toward new (foreign) investors," Idris told reporters.
Idris added that his ministry will also propose six other industries, such as sugar refinery and pulp-making, to be closed for foreign investors.
Such a proposal will be subject to approval by the president.
There are now around 8,000 local cigarette producers, Idris said, and they are mostly small companies.
Phillip Morris International and British American Tobacco Plc (BAT.LN) are the biggest foreign investors in the industry and have majority stakes in two large local producers.
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