Hippindo Urges the DKI Jakarta Provincial Government to be Fair in Implementing the KTR Regional Regulation
The Indonesian Retail and Mall Tenants Association (Hippindo) has reminded the DKI Jakarta Provincial Government to prioritize fairness and rationality in implementing Regional Regulation No. 7 of 2025 concerning Smoke-Free Zones (KTR).
The Chairman of the Hippindo Advisory Board, Tutum Rahanta, emphasized that tobacco products are legal commodities that have been subject to strict supervision and regulation.
“There have been regulations in place to control tobacco products. Who is allowed to buy, age restrictions, display methods, all of these are regulated. Just enforce the existing regulations. The government must be wise in implementing the KTR Regional Regulation,” said Tutum in an official statement on Thursday (February 26).
Economic Impact and Retail Ecosystem
Tutum asked the DKI Jakarta Provincial Government to carefully consider the potential economic impact, especially regarding the proposed total ban on advertising and displays of tobacco products in shopping centers.
According to him, overly restrictive policies can disrupt the business ecosystem involving many parties, including the MSME sector.
“There are people, there are MSMEs, who make a living from the tobacco ecosystem. There is job creation and contributions to state revenue that need to be considered,” he added.
As an illustration, Hippindo currently represents around 200 to 300 retail companies and mall tenants. Of this number, 50% operate in the middle to upper market segment. In total, the organization employs around 800,000 workers.
Compliance by Business Actors
Tutum explained that so far, business actors have shown compliance with sales regulations. This includes placing products in limited areas (behind the counter) and strict supervision of age restrictions for buyers.
“Cigarettes are legal products that are allowed to be displayed and advertised according to the rules. We have followed the procedures in place, so they cannot be accessed by minors,” said Tutum.
He also hopes that the implementation of the KTR Regional Regulation in Jakarta will not create a domino effect that harms the business climate in other regions.
“Let’s not let this KTR Regional Regulation become a symbol of prohibition that is imitated by other regions and actually causes economic distortions. Its implementation must be fair,” he concluded. (Far/P-2)
The implementation of the DKI Jakarta Provincial Regulation No. 7 of 2025 concerning Smoke-Free Zones (KTR) is considered to be able to suppress the economic space of the people.
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