Health Ministry's Plain Packaging Rules Overstep Industrial Authority, DPR Warns

The threat of layoffs looms over workers in the tobacco products industry (IHT) due to a slew of regulations targeting the cigarette sector. Labour unions have spoken out in response to the government’s planned policy on tobacco product packaging, which is part of the implementation of Government Regulation (PP) No. 28/2024. The Ministry of Health is currently drafting a Ministerial Regulation that reportedly will require tobacco product packaging to be uniformly plain, using Pantone 448C.

Sudarto, Chairman of the Advisory Board of the Federation of Cigarette, Tobacco, Food and Beverage Workers Unions of the All-Indonesia Workers Union (FSPRTMM SPSI), stressed that workers in the tobacco and cigarette industry will ultimately be the most affected by any government policy. Speaking at a CNBC Indonesia Coffee Morning event in Jakarta, he highlighted that existing regulations contradict the government’s stated goal of protecting employment sustainability. He noted that the industry is a vital source of livelihood, and the federation’s advocacy focuses on the fate and welfare of IHT sector workers.

Sudarto stated that the industry is encircled by both fiscal and non-fiscal regulations, creating intense pressure that is not just controlling but potentially lethal to the sector. He urged the government to ensure that policies do not hinder the development and welfare of the workforce, warning that a decline in production directly leads to reduced wages and the risk of mass layoffs.

Meanwhile, Chairman of Commission XI of the Indonesian House of Representatives (DPR RI), Misbakhun, emphasised the significant role of the tobacco industry in the national economy. He pointed out that state revenue from tobacco excise has reached Rp 221 trillion, with six million people involved in the industry from agriculture to trade. Misbakhun argued it is profoundly unfair to continue burdening the industry with heavy-handed policies, noting that the economic chain is valued at Rp 300 trillion. He asserted that the Health Minister’s regulation on tobacco packaging is inappropriate, as the authority over industrial products and their packaging lies with the Minister of Industry, not the Ministry of Health. He cautioned that such regulatory overreach must be handled carefully given the enormous economic chain involved.