DPR Urges Government to Introduce Fair Regulations to Protect Tobacco Industry

Firman Subagyo, a member of the DPR’s Commission IV from the Golkar Party, has called on the government to introduce fair regulations and clear legal protections for the tobacco industry. The statement was made in Jakarta amid growing industry concerns over policies perceived to threaten the sustainability of the national tobacco sector. Firman noted that current tobacco regulations and policies have not adequately addressed farmers’ direct interests. He argued that weak legal protections leave farmers vulnerable to market uncertainties and policy shifts. ‘There is no protection, whether legal or otherwise. I stress that the government must not merely exploit farmers. It must ensure our farmers are more productive and receive clear legal safeguards,’ Firman said in a statement on Friday, 29 May 2026. He stressed the tobacco industry is a labour-intensive sector supporting millions of livelihoods from upstream to downstream, including tobacco farmers, cigarette rollers, and distribution and logistics workers. According to Ministry of Agriculture data, tobacco cultivation supports nearly 500,000 households or approximately 1.8 to 2 million individuals directly involved in the sector. Meanwhile, data from the Coordinating Ministry for Economic Affairs shows around 1,700 active tobacco manufacturing units employing over 140,000 workers directly. From a revenue perspective, the Ministry of Finance reports tobacco excise duties contribute over Rp200 trillion annually. Firman stated that all tobacco-related policies must be implemented cautiously to avoid negative impacts on the national economy and investment climate. ‘All policies must be implemented with caution to avoid negative consequences for the national economy,’ he said. He also highlighted the importance of legal certainty for businesses, noting regulatory uncertainty could deter investment expansion or prompt companies to relocate to countries with more stable business environments. Firman cited Turkey as a country with robust regulations protecting its tobacco industry, adding Indonesia currently lacks specific legal frameworks to safeguard strategic commodities like palm oil and tobacco.