Apindo Urges Dialogue-Based Approach for Tobacco Derivative Regulations

The Indonesian Employers’ Association (Apindo) and 37 associations within the national tobacco supply chain have called for a more comprehensive, dialogue-based approach to the refinement of three draft regulations derived from Government Regulation (PP) No. 28 of 2024. “Please do not issue these regulations in the next day or two. Listen to us first. Talk to us first, then we can reach an agreement,” said Sutrisno Iwantono, Head of Public Policy at Apindo, in Jakarta on Thursday. The contested draft policies concern the standardisation of packaging colour and shape, the imposition of maximum limits for nicotine and tar, and a ban on the use of additives in tobacco products and electronic cigarettes. In a joint statement, Apindo and the associations requested that the President not approve the provisions until further dialogue with stakeholders is conducted. Henry Najoan, Chairman of the Indonesian Cigarette Manufacturers Association (GAPPRI), clarified that the industry does not reject the entirety of PP No. 28 of 2024 but opposes these three specific articles, which he claims will devastate the industry. “We are not anti-regulation, but these three articles will clearly kill the industry,” Henry stated. He emphasised that the tobacco supply chain involves approximately six million people from upstream to downstream, generates economic activity worth over IDR 710 trillion, and contributes more than IDR 200 trillion in excise revenue. The associations warned that the standardisation of packaging would make it difficult to distinguish between legal and illegal products, potentially boosting the illicit cigarette trade. They also argued that the maximum nicotine and tar limits contradict existing Indonesian National Standards (SNI). The industry is seeking a rational, fair, and proportional regulatory framework that balances health objectives with economic sustainability and job preservation. Apindo has communicated its concerns to the Task Force for the Mitigation of Layoffs. Meanwhile, the Ministry of Health maintains that the standardised packaging is intended to reduce the visual appeal of tobacco products, especially to children and teenagers, and not to ban legal products. The Ministry stated that the drafting process has included public consultations and input from academics, professional organisations, businesses, and civil society since 2024. Industry representatives noted that the regulations are perceived to have a deadline of 26 July 2026, two years after the enactment of PP No. 28 of 2024, making the issue urgent.