Cigarette Packaging Rules Feared to Fuel Rise in Illegal Cigarettes

Chairman of the Indonesian White Cigarette Producers Association (Gaprindo), Benny Wachjudi, warned that health warnings on cigarette packaging could increase illegal cigarette production. ‘Illegal cigarettes are rampant, accounting for 14% of the market, or around 40 billion sticks. If packaging standardisation is implemented in Indonesia, it will further pressure the legal tobacco industry while fueling the circulation of illegal cigarettes,’ he stated. He also highlighted plans to use Pantone 448 colour, which is not mandated under Government Regulation No. 28 of 2024, the implementing regulation of Law No. 17 of 2023 on Health. If enforced, he fears packaging standardisation would make the tobacco industry unsustainable, especially amid geopolitical and economic uncertainties, threatening the livelihoods of six million workers dependent on the sector. ‘We, as business actors, always comply with regulations. But when regulations cannot be implemented, like this packaging standardisation, how can we survive? We request rational regulations, not forced, and in line with the provisions of PP No. 28/2024,’ he added. Benny stressed the importance of legal certainty for tobacco industry players, including non-excessive fiscal policies and non-fiscal measures that accommodate domestic conditions. Meanwhile, Firmansyah Siregar, Chairman of the Indonesian Vape Retail Association (Arvindo), expressed concerns over the Health Ministry’s proposed packaging standardisation rules. He said forcing such standards would directly impact Indonesia’s e-cigarette industry, particularly small and medium enterprises (SMEs) which form the majority of operators. The Ministry of Health previously held a public consultation for the Draft Ministerial Regulation on Health Warnings, a derivative of Government Regulation No. 28/2024. The initiative aims to standardise cigarette packaging.