The government\u2019s plan to regulate the standardisation of packaging\ncolours for tobacco products and electronic cigarettes through a Draft\nMinister of Health Regulation (RPMK) remains a subject of debate. On one\nhand, the government states the policy is intended to strengthen the\neffectiveness of health warnings. On the other hand, various parties\nbelieve its implementation must consider the impact on industry, the\nworkforce, and the potential circulation of illegal cigarettes. The\nMinistry of Industry and the Ministry of Health have even openly\ndisagreed and are not yet aligned on this policy plan.<\/p>\n
Indonesian consumers are highly price-sensitive. If the price of\nlegal products remains high due to excise duties while their appearance\nis made uniform with quality that is difficult to distinguish, consumers\nwill tend not to stop smoking, but rather migrate to cheaper or even\nillegal products, said Permata Bank Chief Economist Josua Pardede in a\nstatement quoted on Thursday (2\/7\/2026). He also reminded the government\nto thoroughly consider the experiences of other countries before\nimplementing a similar policy in Indonesia. The success of packaging\nregulation policies in several developed countries is inseparable from\nthe support of law enforcement, distribution supervision, and different\nlevels of public purchasing power.<\/p>\n
In Australia, data from the Bureau of Statistics (ABS) actually shows\nthat nicotine consumption from illegal sources surged from 12% in 2013\nto 80% in 2025. This surge was triggered by the price difference, with\nlegal product prices tripling due to high excise duties compared to\nstable illegal product prices. Indonesia has the potential to face a\nsimilar risk if the loss of visual appeal actually encourages consumers\nto switch to the cheaper black market, he said.<\/p>\n
From an economic perspective, Josua estimates the policy could also\nput pressure on the tobacco products industry, which has a long supply\nchain, ranging from manufacturing, packaging printing, distributors, and\nretail traders to tobacco and clove farmers. Amid a challenging national\neconomic climate, this regulatory uncertainty forces business actors to\nimplement efficiency measures by withholding investment and reducing\nproduction. As a result, the risk of mass layoffs among the productive\nage group increases sharply, he stated.<\/p>\n
Previously, the Ministry of Industry stated that in principle it\nsupports the drafting of derivative regulations for Government\nRegulation Number 28 of 2024 as an effort to provide legal certainty for\nthe business world. However, the ministry requested that provisions\nregarding the standardisation of colours and font types on cigarette\npackaging be reviewed. The Ministry of Industry in principle supports\nthe issuance of the PP 28 derivative because this is indeed for business\ncertainty. However, in this case we reject the parts that regulate\ncolour standardisation and font standardisation, said the Director of\nthe Beverage, Tobacco Products and Refreshing Ingredients Industry at\nthe Ministry of Industry, Merrijantij Punguan Pintaria, during an IHT\ndiscussion on Friday (26\/6\/2026).<\/p>\n
Meanwhile, the Ministry of Health emphasised that the regulation\nbeing drafted is not the implementation of plain packaging. The Head of\nthe Tobacco-Related Disease Control Working Group at the Ministry of\nHealth, Benget Saragih, explained that the regulation only governs the\nstandardisation of packaging colour using Pantone 448C, while brand\nidentity, logos, and font types are still permitted so that products\nfrom each company can still be recognised by the public. We at the\nMinistry of Health are not implementing plain packaging, not plain\npackaging. Only the colour standard is regulated. Brands and logos\nremain as they are, so it is only the colour to make the health warnings\nmore effective, said Benget.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/cigarette-packaging-rules-under-scrutiny-amid-concerns-of-potential-layoffs-1782967857", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }