Lawmakers are calling on the government to take concrete steps to\nprovide clear legal protection for the tobacco industry (IHT). This move\nis deemed urgent as the sector is a labour-intensive industry and a\nnational strategic commodity.<\/p>\n
Firman Subagyo, a member of the Golkar Party faction in the House of\nRepresentatives\u2019 Commission IV, noted that current regulations and\npolicies in the tobacco sector do not adequately address the direct\ninterests of tobacco farmers. The lack of legal framework leaves farmers\nvulnerable amid market uncertainties and policy changes.<\/p>\n
He stressed that the situation must be resolved promptly to ensure\nfarmers receive protection commensurate with their contributions. \u2018There\nis no protection, neither legally nor otherwise. I insist that the\ngovernment should not merely exploit farmers but must ensure they become\nmore productive and have clear legal safeguards,\u2019 he said in a statement\non Thursday (28 May).<\/p>\n
The tobacco industry supports millions of people across the supply\nchain, including farmers, roll workers, and logistics personnel.\nAccording to Ministry of Agriculture (Kementan) data, tobacco\ncultivation sustains nearly 500,000 households, equivalent to 1.8 to 2\nmillion individuals directly involved.<\/p>\n
Data from the Coordinating Ministry for Economic Affairs (Kemenko\nPerekonomian) shows around 1,700 active tobacco industry businesses\nemploying over 140,000 workers directly. The Ministry of Finance\n(Kemenkeu) reported that tobacco excise revenue exceeds Rp200 trillion\nannually.<\/p>\n
\u2018All policies must be implemented with caution to avoid negative\nimpacts on the national economy,\u2019 Firman said.<\/p>\n
He added that weak regulations have raised concerns among businesses\nabout investment certainty in Indonesia. Without legal certainty,\ninvestors may withhold commitments or relocate capital to countries with\nmore stable business environments.<\/p>\n
This situation threatens employment for many, particularly in\nlabour-intensive sectors. Other countries have long implemented strong\nprotective regulations for key commodities.<\/p>\n
He cited Turkey, which has specific regulations to protect its\nnational tobacco industry. This contrasts with Indonesia, which lacks\nspecific laws to safeguard strategic commodities like palm oil and\ntobacco, despite their annual revenue contributions of hundreds of\ntrillions of rupiah.<\/p>\n
\u2018The government must ensure regulations are implemented\nproportionally while considering food security and the sustainability of\nnational commodities,\u2019 he added.<\/p>\n
Firman pledged his commitment to revising existing regulations to\nrestore support for the public. National tobacco stakeholders are\nincreasingly concerned about regulations threatening the industry\u2019s\nsurvival, including plain packaging proposals, maximum nicotine and tar\nlimits, and bans on additives.<\/p>\n
This effort aligns with reducing complex bureaucratic procedures that\nhave long hindered business operations. Boosting domestic product usage\nis also being promoted to revive national economic independence.\n(H-2)<\/p>\n
Sarmidi Husna, Director of the Pesantren and Community Development\nAssociation (P3M), called for prudent and comprehensive approaches in\nsetting maximum nicotine limits.<\/p>\n
HRM Khalilur R Abdullah Sahlawiy, owner of Bandar Rokok Nusantara\nGlobal Group (BARONG Group), also known as Gus Lilur, spoke on\ncrackdowns on illegal cigarettes and the cigarette stamp tax\ncontroversy.<\/p>\n
Farmers are urging the government to prioritise protecting local\ncommodities and national economic sovereignty in policy-making.<\/p>\n
The Ministry of Finance\u2019s decision by Purbaya Yudhi Sadewa not to\nincrease tobacco excise rates and retail prices in 2026 has been\nwelcomed positively.<\/p>\n
Tobacco farmers have rejected the Health Ministry\u2019s proposal to\nregulate cigarette packaging. Opposition to Government Regulation No.\u00a028\nof 2024 and its derivatives has been ongoing since August 2024.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/lawmakers-demand-clear-legal-framework-for-tobacco-industry-1780015936", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }