Juul halts Indonesia sales over age restriction fears in setback to expansion

JUUL Labs is halting sales in Indonesia, citing concerns that it cannot stop retailers from selling its high-nicotine e-cigarettes to young people in a largely unregulated tobacco market.

Juul disclosed its Indonesia plans to Reuters as the news organisation was inquiring about the company’s marketing to younger customers there and in the other two Asian countries where it operates: the Philippines and South Korea. A Reuters review of Juul’s Asia marketing found the firm has promoted e-cigarettes in ways similar to those that raised the ire of regulators in the US.

Juul said in a statement that it would suspend sales in Indonesia “indefinitely” until it could ensure online and traditional retailers will “increase and enforce age restrictions and compliance measures”. The firm’s decision to retreat from the world’s fourth most populous nation – which has not been previously reported – marks a major setback for Juul’s larger plans to expand in Asia. The region has been seen as critical to the company’s growth amid mounting US legal and regulatory problems.

Juul had launched in Indonesia just seven months ago because it was attracted to the nation’s permissive regulatory environment, according to a former employee and another source familiar with its Asia sales strategy.

The company had targeted customers aged 19 to 35, according to those two sources and a current Juul employee.

A Juul spokesman said the company only wants adult smokers to use its products.

The Indonesia decision came after Juul said last month that it was “reviewing our strategies and operations” in South Korea – where the company has faced regulatory scrutiny – because of disappointing sales. Juul has also held off planned expansions in the Netherlands and New Zealand.