{
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    "data": {
        "id": 1876861,
        "msgid": "business-owners-warn-illegal-cigarettes-could-surge-in-indonesia-due-to-this-regulation-1784796763",
        "date": "2026-07-23 14:50:06",
        "title": "Business Owners Warn Illegal Cigarettes Could Surge in Indonesia Due to This Regulation",
        "author": "",
        "source": "CNBC",
        "tags": "",
        "topic": "Economy",
        "summary": "Indonesian business associations are urging the government to delay implementing three derivative regulations of the Health Government Regulation, arguing they will cripple the legal tobacco industry. They claim standardised packaging, nicotine limits, and additive bans will fuel the illegal cigarette trade and reduce state revenue from excise duties. The industry supports other health measures, such as raising the minimum purchasing age to 21, but insists the proposed rules will harm workers and tobacco farmers without proven health benefits.",
        "content": "<p>The business community is asking the government not to rush the\nratification of several derivative regulations of Government Regulation\n(PP) Number 28 of 2024 on Health, which governs tobacco products. The\nIndonesian Employers\u2019 Association (Apindo) has proposed a moratorium on\nthree draft policies deemed risky for hitting the legal cigarette\nindustry and impacting state revenue. The three regulations requested to\nbe postponed are the standardisation of cigarette packaging colour and\nshape, the limitation of maximum nicotine and tar levels, and the\nprohibition of additives in tobacco products. Apindo\u2019s Head of Public\nPolicy, Sutrisno Iwantono, stated that these three policies could\npotentially erode the sustainability of the legal industry. According to\nhim, pressure on the official industry will instead open up greater\nspace for the circulation of illegal cigarettes. \u201cIn essence, the\nstandardisation of packaging, tar and nicotine limits, and the ban on\nadditives will de facto shut down the legal industry. The impact will\ncertainly be on the workforce and will actually fertilise the illegal\ncigarette trade without proven health benefits,\u201d Sutrisno said during a\npress conference at the Apindo Office in Jakarta on Thursday. He\nassessed that if the illegal industry grows further, the government will\nlose one of its sources of state revenue from tobacco excise. \u201cThis\nregulation means the legal, compliant industry has to bear the burden\nbut does not solve the problem because an illegal industry will grow.\nThis means people will still smoke, but the government suffers losses\nbecause excise revenue decreases,\u201d he said. A similar sentiment was\nexpressed by the Chairman of the Indonesian Cigarette Manufacturers\nAssociation (GAPPRI), Henry Najoan. He stated that the industry\nofficially rejects the three points of the derivative regulation of PP\n28\/2024 ahead of its enactment deadline. \u201cAhead of 26 July 2026, which\nis the deadline for the derivative of PP 28\/2024 to be enacted, we must\nstate our position that we reject the government\u2019s plan to standardise\ncigarette packaging, limit nicotine and tar levels, and ban additives,\u201d\nHenry said at the same event. Besides the health regulation issue, Henry\nalso responded to the government\u2019s plan to change the tobacco excise\ntariff structure by adding layers. He said the industry cannot provide\nfurther comments before the official regulation is issued. \u201cRegarding\nadding excise layers, please let the government analyse and provide more\ndetailed protection, as it will certainly involve Customs and what was\nformerly known as the Fiscal Policy Agency. We are just waiting for the\nspecifics from the government,\u201d he stated. For information, Finance\nMinister Purbaya Yudhi Sadewa has confirmed that the government has no\nplans to increase cigarette excise rates. The option being prepared is a\nrestructuring of the tariff structure through the addition of layers. In\na joint statement, Apindo and several tobacco industry associations\nrequested that the government not implement the three provisions. They\nbelieve standardising packaging could increase the circulation of\nillegal cigarettes and erode state revenue. Furthermore, the industry\nalso rejects the limitation of nicotine and tar levels, which they\nconsider contrary to the Indonesian National Standard (SNI), as well as\nthe prohibition of additives in tobacco products and electronic\ncigarettes. Nevertheless, business players stated they continue to\nsupport several policies for controlling cigarette consumption. They\nagree with the prohibition on children buying or using tobacco products\nthrough raising the minimum age limit to 21 years, and they support the\nimplementation of pictorial and written health warnings covering 50\npercent of the packaging. Apindo also hopes the government will\nformulate regulations that not only pursue public health objectives but\nalso consider the sustainability of the industry, the protection of\nworkers and tobacco farmers, as well as the national economic growth\ntarget of 8 percent, which is part of President Prabowo\u2019s Asta Cita\nvision.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/business-owners-warn-illegal-cigarettes-could-surge-in-indonesia-due-to-this-regulation-1784796763",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}