Indonesian Political, Business & Finance News

GAPPRI Warns Plain Packaging Proposal Could Lead to Mass Layoffs

| Source: ANTARA_ID Translated from Indonesian | Economy
GAPPRI Warns Plain Packaging Proposal Could Lead to Mass Layoffs
Image: ANTARA_ID

Jakarta (ANTARA) - The Indonesian Association of Cigarette Factory Unions (GAPPRI) believes that the proposed implementation of plain packaging for tobacco products has the potential to create mass layoffs and new levels of poverty.

In a written statement received in Jakarta on Saturday, GAPPRI General Chairman Henry Najoan noted that the proposal is contained within the Draft Ministerial Regulation of the Ministry of Health (RPMK) concerning the inclusion of health warnings and information on tobacco and electronic cigarette products.

According to Najoable, the drafting of the RPMK by the Ministry of Health should refer to Article 437 of Government Regulation (PP) 28/2024 as the implementing regulation of Law (UU) 17/2023 on Health. However, he argued that the substance of the current draft RPMK deviates significantly from the mandate of the higher regulation.

Article 437, Paragraph (6) of PP 28/2024 mandates further regulation regarding health warning images and text, rather than the standardisation or unification of tobacco product packaging. He stated that the Ministry of Health is overreaching by attempting to include packaging standardisation—specifically Articles 3 to 8 in the draft RPMK—which is not mandated by Article 437 of PP 28/2024.

“This is no longer about regulating health warnings, but about regulating industrial design, which is a trademark right,” Henry Najoan emphasised.

Referring to GAPPRI’s studies, he stated that the unification of packaging design and colour would create loopholes for the proliferation of illegal cigarettes. This is because legal and illegal products would become increasingly difficult to distinguish, triggering unfair competition and fostering the circulation of cheap, untraceable cigarettes from unknown producers.

Henry expressed regret that despite several public consultation processes, feedback from the tobacco ecosystem—particularly regarding packaging standardisation—has not been accommodated by the Ministry of Health. Furthermore, he expressed concern over the forced adoption of the Framework Convention on Tobacco Control (FCTC) in the draft, noting that the President of the Republic of Indonesia has not yet ratified the FCTC.

He argued that the Ministry of Health should not use the FCTC as a regulatory benchmark, given that Indonesia’s conditions differ from other nations, as doing so could create new poverty and mass layoffs amidst the current unstable economic situation.

He maintained that existing regulations are sufficient and only require strengthened education. Data shows that current controls are effective, as reflected in the continuous decline in production volume. “From 356.5 billion sticks in 2019 to 307 billion sticks in 2025, a decrease of 49.5 billion sticks. This is proof that even without plain packaging, consumption continues to decline,” he said.

Consequently, GAPPRI has requested that the Ministry of Health review the draft RPMK to ensure legal certainty, a conducive business climate, and the sustainability of the national legal Tobacco Product Industry (IHT).

“This is in line with President Prabowo’s direction, which prioritises the protection of national industry, the continuity of labour-intensive economies, and state revenue to maintain national economic sovereignty,” he concluded.

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