{
    "success": true,
    "data": {
        "id": 1602699,
        "msgid": "business-leaders-concerned-that-strict-nicotine-and-tar-limits-will-fuel-illegal-cigarette-smuggling-into-1773150798",
        "date": "2026-03-10 20:00:00",
        "title": "Business Leaders Concerned That Strict Nicotine and Tar Limits Will Fuel Illegal Cigarette Smuggling into Indonesia",
        "author": "",
        "source": "CNBC",
        "tags": "",
        "topic": "Regulation",
        "summary": "Indonesian cigarette manufacturers have warned that the government's proposed regulations capping nicotine at 1 milligram and tar at 10 milligrams per cigarette could inadvertently drive growth in the illegal tobacco market by making domestic leaf uneconomical for legal producers. Industry leaders contend that overly stringent restrictions will push farmers to sell tobacco to unregulated illegal manufacturers and facilitate counterfeit products, particularly if plain packaging requirements are implemented.",
        "content": "<p>Jakarta \u2013 Tobacco industry executives have expressed concern that the\ngovernment\u2019s plan to establish maximum limits on nicotine and tar\ncontent in cigarettes risks triggering a surge in illegal cigarette\ntrafficking. Industry representatives have cautioned that excessively\nstrict regulations could instead divert consumption to uncontrolled\nproducts.<\/p>\n<p>Business leaders assess that Indonesia\u2019s cigarette market has\ndifferent characteristics compared to other countries and therefore\nrequires a more contextualised policy approach.<\/p>\n<p>As reported, the government is currently reviewing regulations to\nestablish maximum limits on nicotine and tar in cigarettes. Under the\nproposed regulations, the government would set a maximum nicotine\ncontent of 1 milligram (mg) and tar of 10 mg per cigarette stick.<\/p>\n<p>These regulations, which derive from Government Regulation Number 28\nof 2024, are considered potentially disruptive to Indonesia\u2019s tobacco\nindustry ecosystem across the entire supply chain.<\/p>\n<p>Benny Wachjudi, chairman of the Indonesian White Cigarette\nManufacturers Association (GAPRINDO), stated that excessively low\nrestrictions on nicotine and tar content risk making it difficult for\nlocal raw materials to be absorbed by the industry.<\/p>\n<p>\u201cIf nicotine is set very low, our farmers\u2019 tobacco will not be\nabsorbed by the industry. As a result, the crop cannot be used,\u201d said\nBenny during a press conference in Jakarta on Tuesday, 10 March\n2026.<\/p>\n<p>This situation could create unintended consequences unwelcome to the\ngovernment.<\/p>\n<p>\u201cIf tobacco is not absorbed, farmers still need to survive. It is\npossible that eventually it could be sold to illegal cigarette\nmanufacturers because illegal operators do not need to comply with\nregulations,\u201d he stated.<\/p>\n<p>Policies that excessively burden legal industry operators can create\nopportunities for illegal manufacturers to flourish. This situation is\ndangerous because illegal products operate outside government\noversight.<\/p>\n<p>\u201cLegal operators are made to struggle, while illegal ones do not\ncomply with any regulations whatsoever. That is what concerns us,\u201d he\nsaid.<\/p>\n<p>Additionally, the proposed regulations regarding additives in\ncigarettes are considered to have potentially far-reaching impacts on\nvarious types of tobacco products. Many cigarette products use specific\nadditives to maintain flavour characteristics.<\/p>\n<p>\u201cIf additives like menthol are banned, white cigarette manufacturers\nwill also face difficulties,\u201d he noted.<\/p>\n<p>He also highlighted concerns about the proposed plain packaging\npolicy, which could facilitate product counterfeiting.<\/p>\n<p>\u201cIf all packaging is made identical without logos, it is actually\neasier to counterfeit and harder to distinguish between genuine and fake\nproducts,\u201d said Benny.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/business-leaders-concerned-that-strict-nicotine-and-tar-limits-will-fuel-illegal-cigarette-smuggling-into-1773150798",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}