Ban on Cigarette Flavourings Sparks Concerns Over Declining Turnover for Traders
Traditional market traders and retail merchants are concerned that the planned ban on the use of flavourings, menthol, and cooling agents in processed tobacco products, via a Draft Ministerial Regulation of Health (Permenkes), will suppress their sales turnover.
The Secretary General of the Central Executive Board of the All-Indonesia Market Traders Association (APPSI), Mujiburrohmman, stated that consumer habits regarding flavoured tobacco products could affect demand if the use of flavourings is prohibited.
“From the retail or trading perspective, I am certain that because people are accustomed to flavourings, it will impact demand, thereby reducing turnover,” Mujiburrohman said in a written statement on Saturday (3/10/2026).
According to him, restrictions on flavoured tobacco products also need to consider the potential for changes in consumer behaviour. He warned of the possibility that consumers might switch to other products if the products they currently consume are no longer available.
Mujiburrohman assessed that this condition has the potential to increase the circulation of illegal tobacco products that are not bound by existing regulations. He noted that changes in consumption patterns could also impact state revenue from tobacco excise.
Similar concerns were expressed by the Vice Chairman of the Central Executive Board of the Indonesian Cooperative and Retail Association (Akrindo), Anang Zunaedi. He stated that the sudden implementation of regulations risks creating an economic impact for retail traders.
“The decline in sales turnover, particularly in the cigarette category, could reach 20 to 30 per cent. This is based on my observations,” said Anang.
Anang added that the decline in sales at the retail level could ultimately affect the purchase volumes of traders from producers. This condition, according to him, also has the potential to impact the tobacco product industry sector, including labour in the Hand-Rolled Clove Cigarette (SKT) segment.
“While the government intends to not ignore public health, the policy must certainly be calculated well in advance and accurately,” Anang remarked.
He urged the government to prepare policies by considering the various potential impacts. According to Anang, a Regulatory Impact Assessment (RIA) is necessary to examine the risks of the policy on the economy, employment, and other aspects.
“We should be accommodated so that we can predict what needs to be prepared and what needs to be done, as well as what the impacts will be. But this is not the case; the government is drafting the regulation unilaterally, and we are not being given space for aspiration,” he concluded.