Indonesian Political, Business & Finance News

Cross-Sector Ministries Oppose Proposed Plain Packaging Regulation for Tobacco Products

| | Source: MEDIA_INDONESIA Translated from Indonesian | Regulation
Cross-Sector Ministries Oppose Proposed Plain Packaging Regulation for Tobacco Products
Image: MEDIA_INDONESIA

The Indonesian Ministry of Health is progressing with a draft Ministerial Regulation (Permenkes) regarding the inclusion of health warnings and information on tobacco and e-cigarette products. The draft proposes that packaging for both cigarettes and e-cigarettes must use standardised colours, with specific regulations governing brand identity and fonts.

Dr Andi Saguni, Acting Director General of Disease Prevention at the Ministry of Health, stated that packaging currently serves as a promotional tool that attracts new smokers, particularly among the youth. “The primary goal of standardised packaging is not to prohibit legal products, but to reduce the visual appeal that makes tobacco products attractive to children and adolescents,” Dr Saguni explained. He added that the Ministry has conducted public consultations and coordinated with various stakeholders, asserting that public health protection must remain the priority.

However, the proposed policy has met resistance from several cross-sector ministries, which argue that the regulation may be ineffective for health goals while causing significant economic, employment, and legal issues regarding brand rights and consumer rights. The Deputy Minister of Law, Edward Omar Sharif Hiariej, noted that the proposed standardisation could potentially violate existing trademark laws, reminding that brands are valuable assets protected under Law Number 20 of 2016.

From an economic perspective, the Deputy Minister of Industry, Faisol Riza, highlighted the significant contribution of the tobacco industry (IHT) to the national economy. In 2024, excise contributions from this sector reached Rp216.9 trillion, and the industry supports over 6 million livelihoods. Furthermore, tobacco exports reached US$1.85 billion in 2024, a 21.71 per cent increase from 2023.

The Coordinating Ministry for Economic Affairs noted that the processing industry contributes 19.07% to the GDP, with tobacco being a strategic national commodity. Similarly, the Ministry of Agriculture expressed concerns that the proposed regulations could threaten tobacco yields. According to the Directorate General of Plantations, tobacco is a leading commodity, with 229,123 hectares cultivated in 2023, producing 285,348 tonnes of dry tobacco.

Yudi Wahyudi, Head of the Annual Crop Group at the Directorate General of Plantations, emphasised that tobacco is a vital driver of the rural economy and a source of foreign exchange. He warned that regulations such as plain packaging and restrictions on tar and nicotine levels could severely impact farmer productivity, as most local varieties naturally exceed the proposed limits.

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