Indonesian Political, Business & Finance News

Farmers Fear Standardised Packaging Will Kill Tobacco Development Prospects

| | Source: MEDIA_INDONESIA Translated from Indonesian | Agriculture
Farmers Fear Standardised Packaging Will Kill Tobacco Development Prospects
Image: MEDIA_INDONESIA

Tobacco farmers in West Java have expressed their concerns over the push for standardised cigarette packaging, as outlined in the Draft Ministerial Regulation of Health (RPMK) concerning the inclusion of health warnings and information on tobacco products and electronic cigarettes.

Enjan, a tobacco farmer in Tasikmalaya, West Java, believes the proposal for standardised packaging will kill the potential of tobacco in Tasikmalaya, which is currently expanding. Since 2024, the expansion of tobacco farmland in Tasikmalaya has been revitalised, particularly with significant growth in the Tamansari and Kawalu districts.

He noted that while the potential for tobacco in Tasikmalaya is flourishing, the push for standardised packaging will hit the promising prospects and development of tobacco farming. “What farmers need right now is empowerment and protection, including increasing human resource capacity and providing production infrastructure and facilities. We should not be burdened with additional draft regulations that further pressure us. It is not just companies or industries that will suffer; we farmers will also feel the impact,” Encro said in a statement on Wednesday.

West Java is one of the nation’s vital tobacco centres, boasting 14 superior local tobacco varieties released by the Ministry of Agriculture. Furthermore, West Java produces ‘mole’, a flagship commodity from Sumedang Regency, which is registered as a Geographical Indication (GI) commodity with the Ministry of Law and Human Rights. Currently, an estimated 20,000 to 25,000 families depend on the tobacco sector in West Java.

Enjan also expressed fears that illegal cigarettes will become more widespread if the standardised packaging regulations are implemented, especially given the plan to standardise fonts, shapes, and colours using Pantone 448C to ensure they are not obscured by excise stamps. “How will the public easily distinguish which cigarettes they are buying if the packaging is uniform? This will only lead to an increase in illegal cigarettes. Illegal producers will thrive because their products will be easy to imitate and distribute. We cannot remain silent regarding this draft regulation,” Enjan added.

Separately, Meynar Kusumo, Head of the Institutional Industrial Relations Working Team at the Ministry of Manpower, stated that the continuous regulatory pressure on the tobacco products industry (IHT) creates vulnerability for workers through both fiscal and non-fiscal regulations. “We recommend against strict regulation, including standardised packaging. It is important to develop economic mitigation strategies,” Kusumo said.

He emphasised that the tobacco industry, with its ecosystem spanning from upstream to downstream, employs 6 million workers and is crucial in supporting the target of 8% economic growth. “The tobacco industry is a big deal. It contributes approximately 10% of the state budget through tobacco excise (CHT). The most important task now is how we can achieve 8% economic growth through synergy from all parties—industry, workforce, and regulation. This is the primary concern,” Kusumo stated.

The government is currently planning to limit nicotine and tar levels in tobacco products to address smoking prevalence in Indonesia. The Coordinating Ministry for Human Development and Culture (Kemenko PMK) has affirmed its commitment to absorbing all aspirations from various stakeholders. Meanwhile, the government has ensured that tobacco excise rates for 2025 will not increase, although there will be adjustments to the retail selling price (HJE) for certain tobacco products.

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