800,000 Workers Potentially Affected by Jakarta's Smoke-Free Zone Bylaw

JAKARTA, KOMPAS.com - The implementation of the Jakarta bylaw on smoke-free zones (Perda KTR) Number 7 of 2025 in Jakarta is being questioned by retail business actors.

The Indonesian Retail and Mall Tenants Association (Hippindo) believes that the implementation of the regulation should be carried out fairly and rationally because it has the potential to impact approximately 800,000 workers in the retail and shopping mall sectors.

“Please consider that there are people, there are MSMEs, who support their children and families from the tobacco ecosystem. There is job creation and a contribution to state revenue that must be considered,” said Chairman of the Hippindo Advisory Board, Tutum Rahanta, in an official statement on Thursday (February 26, 2026).

“So far, there have been regulations that control tobacco products, ranging from age restrictions to the way they are displayed. Just enforce the existing regulations. The government needs to be wise in implementing the bylaw on smoke-free zones in the future,” said Tutum.

According to him, the policy not only concerns health aspects but also the sustainability of businesses and workers who depend on the tobacco ecosystem.

“Currently, the number of workers under the umbrella of Hippindo members is 800,000 people. This number is considered to contribute significantly to economic growth,” he said.

He believes that local governments need to consider the sector’s contribution to the economy, including job creation and state revenue.

Hippindo also asks the Jakarta Provincial Government to take a balanced position in the midst of differing views regarding the restriction of advertising and display of tobacco products.

Business actors, according to Tutum, have complied with sales regulations, including placing products behind the cashier and limiting access for underage buyers.

“I think the government’s obligation is to stand in the middle. Don’t let the implementation of the bylaw cause economic distortions,” he said.

Hippindo currently has around 200 to 300 retail companies and mall tenants, with about 50 percent from the upper-middle segment, which is considered relatively resilient to economic shocks.

However, the organization emphasizes the need for proportional policy implementation so that economic impacts can be minimized in Jakarta.