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money. If governments tax cigarette producers, then cigarette prices will simply go up. The prices include the tax.
Which ever governments tax, both the smoker and the cigarette manufacturer pay. They pay inversely proportional to their price elasticity.
Addicted smokers will smoke anyway whether the price increase or not. Cigarette producers can quickly reduce or increase their cigarette production.
So, flexible the cigarette producers are immune against governments’ intervention. So the smokers effectively pay all the tax.
Have you ever heard someone tell you that if you do not like to live in a country just get the hell out somewhere else? What about if someone tells you that if you don’t like to work for companies just take a hike?
If it is easy for you to take a hike, then you are immune against all form of company’s policy. Company’s policy will not affect your happiness. If the company abruptly reduces your salary you’ll simply move somewhere else. Got it?
The moral of the story is the more flexible you are, the more you are immune against whatever policy your governments have.
Speaking of immunity, capital is the most flexible resources in the earth. It’s so easy to move capital from one country to another.
Hence, whatever rules Indonesian governments implement it will not affect capital owners. It will only affect the fate of workers in Indonesia.