Health Ministry's Plain Packaging Rules Spark Controversy Over Labour Impact
Opposition to the planned standardisation of tobacco product packaging (plain packaging) in the draft Health Ministry Regulation (RPMK) has intensified. Business associations, alongside the Ministry of Industry, argue the policy could disrupt the investment climate and severely impact the industry and related sectors. The opposition resurged following the Health Ministry’s public consultation on electronic cigarette health warning regulations on 25 May 2026. Unfortunately, the revised title does not reflect substantive changes, as the plain packaging clause—standardising packaging—continues to face backlash from stakeholders due to potential intellectual property rights violations.
The Ministry of Industry has reiterated its opposition to the packaging standardisation proposal in the discussion of the derivative regulation of Government Regulation No. 28 of 2024 (PP 28/2024). Merrijantij Punguan Pintaria, Director of Beverage, Tobacco, and Refreshment Industries at the Ministry of Industry, stated that stakeholders have raised concerns during the public consultation process. “We submitted our inputs together with all stakeholders. We await the final draft incorporating these suggestions. Packaging standardisation is what we oppose,” he said in an official statement on Thursday (28 May).
From the business perspective, the Indonesian Employers Association (APINDO) believes the policy requires thorough assessment to avoid investment-unfriendly uncertainty. Sutrisno Iwantono, APINDO’s Public Policy Head, stressed the importance of legal and regulatory certainty for business sustainability. “For businesses, legal certainty, regulatory stability, and investment protection are paramount. If implementing a policy, a comprehensive assessment is necessary to avoid disrupting the investment climate,” he said.
He noted that the tobacco industry has played a vital role in the economy, including job creation and interlinkages with other sectors. “We know the tobacco industry is a key economic sector capable of absorbing both direct and indirect labour. Any policy will inevitably impact this,” he added.
Sutrisno also highlighted the extensive supply chain linkages of the industry with other sectors. “Particularly its industrial linkages with downstream sectors such as distribution, retail, and even creative industries,” he said.
Regarding implementation, APINDO believes the government should provide adequate transition periods and conduct transparent regulatory impact assessments. “Policies should include sufficient transition periods for businesses to adjust, and the government must carry out open regulatory impact assessments involving industry associations,” Sutrisno explained.
He stressed that businesses support consumption control efforts, but policies must balance industrial stability. “We fully support consumption control policies, but they must also consider law enforcement and national industrial stability,” he added.
APINDO also highlighted potential intellectual property impacts, particularly regarding legally protected trademarks’ economic value. “From a business perspective, trademarks are a crucial part of intellectual property that must be legally protected due to their economic worth,” Sutrisno added.
Previously, stakeholders warned that plain packaging policies and other PP 28/2024 derivative rules—such as nicotine and tar restrictions and bans on additives—could have widespread socio-economic impacts. This is because the tobacco industry is labour-intensive, employing millions, and has strong cross-sector linkages.
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