House Commission XI Warns Plain Cigarette Packaging Could Trigger Unemployment for 6 Million

The Chairman of Commission XI of the Indonesian House of Representatives (DPR), Mukhamad Misbakhun, has stated that the plan to standardise the shape and colour of cigarette packaging (plain packaging) needs to be thoroughly reviewed. He believes the policy, being prepared through a draft Minister of Health Regulation (RPMK), could trigger economic consequences, including a potential rise in unemployment affecting up to 6 million people. Misbakhun said the discussion of the policy cannot focus solely on health aspects. He stressed that the government must also consider the impact on the tobacco industry, farmers, the workforce, and state revenue. According to his records, the tobacco industry provides a fiscal contribution of approximately Rp221.7 trillion, with an economic chain value reaching Rp300 trillion. “There will be unemployment for 6 million people, as mentioned earlier. Structural poverty will occur among domestic farmers,” Misbakhun said in a written statement on Tuesday, 28 July 2026. Beyond the potential for job losses, Misbakhun assessed that standardised packaging would eliminate brand equity for tobacco products. He argued this condition could disrupt the market structure and open up greater opportunities for the circulation of illegal cigarettes. He also reminded that the tobacco product industry has a long supply chain, and any policy must consider the sustainability of farmers and business actors dependent on the sector. The Ministry of Industry shares a similar view. The Director of the Ministry of Industry, Merrijantij Punguan Pintaria, stated that the plain packaging plan must be studied more deeply. She noted that the current share of illegal cigarettes has already reached 13.9 percent, and the policy could further reduce state revenue. The plain packaging plan is part of a draft Minister of Health Regulation, which is a follow-up to Government Regulation Number 28 of 2024 on the implementation of Law Number 17 of 2023 on Health. Both the DPR and the Ministry of Industry are urging that the discussion of this regulation carefully consider the balance between public health objectives and the economic impact on the sector.