Indonesian Political, Business & Finance News

East Java Regional Heads Reject Health Ministry's Plain Packaging Rule

| | Source: MEDIA_INDONESIA Translated from Indonesian | Economy
East Java Regional Heads Reject Health Ministry's Plain Packaging Rule
Image: MEDIA_INDONESIA

A number of East Java regional government leaders have jointly rejected the standardised packaging rule for processed tobacco products, or plain packaging, being drafted by the Health Ministry, believing it will harm farmers and regional income derived from the tobacco sector. Moreover, the proposal continues to be pushed by the Health Ministry, with concerns it will make tobacco products and e-cigarettes difficult to distinguish from one another, thereby complicating the supervision of illegal cigarettes that the government is currently intensifying.

East Java Governor Khofifah Indar Parawansa recently highlighted the impact of tightening regulations related to the tobacco sector. “The tobacco industry has made a major contribution to East Java, both in state revenue, employment, business opportunities, and improving the welfare of farmers and the community,” Khofifah said. She revealed that rules hitting the tobacco sector could affect tobacco excise revenue from East Java. According to her, from 2018 to 2024, the trend of tobacco excise revenue continued to rise, with East Java’s contribution reaching Rp133.2 trillion, or 61.41 per cent of the total national excise revenue of Rp216.9 trillion in 2024. “East Java is the backbone of national tobacco excise revenue. Policies affecting this industry must be carefully considered,” she added.

On a separate occasion, Situbondo Regent Yusuf Rio Wahyu Prayogo urged the government to cancel discussions on implementing plain packaging for tobacco products. “This is very crucial. Cancelling packaging standardisation is a form of support for the regional economy and tobacco sector workers,” he stressed. Rio emphasised that the tobacco industry is one of the pillars of state revenue and for the Situbondo region. This area received Tobacco Excise Revenue Sharing Funds of Rp59 billion in 2024. The funds are used for infrastructure development, excise law enforcement, and social assistance such as direct cash assistance for farm labourers and cigarette factory workers.

Meanwhile, Bondowoso Regent Abdul Hamid Wahid stated the importance of considering conditions in tobacco-producing regions when deciding policies at the central government level. Rules issued by the central government must protect regional interests and provide solutions before regulations are enforced. This push is a commitment by regional governments to protect tobacco farmers, because the economic impact felt by the regions will be far greater. “Tobacco is the lifeblood. There are 5,000 farmers in Bondowoso who live from tobacco. However, tobacco actually supports more than 5,000 farmers, it could even be four to six times that number if we count other people involved,” he said. His party will also focus policies on strengthening local tobacco market access, protecting regional agricultural culture, and stabilising selling prices at the farmer level. The use of Tobacco Excise Revenue Sharing Funds will also be optimised to be right on target in supporting the welfare of farmers and farm labourers. “The regional government views farmers and farm labourers as the main producer class in the agricultural economic system that must be protected,” he concluded.

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