House of Representatives and Labour Unions Reject Plain Packaging Proposal to Prevent Wave of Layoffs

Jakarta, CNBC Indonesia - The government’s plan to standardise the colour of packaging for tobacco and electronic cigarette products through a draft Minister of Health Regulation (RPMK) continues to draw scrutiny and rejection from various parties. The Ministry of Health states that this standardisation aims to support efforts to control the consumption of tobacco products.

Director of Prevention and Control of Non-Communicable Diseases at the Ministry of Health, Siti Nadia Tarmizi, explained that the primary aspect prioritised in this policy is health. According to her, uniform packaging will reduce the appeal of tobacco products such as cigarettes.

She elaborated that if cigarette packaging is made unattractive, it could diminish children’s curiosity to try them. The policy’s main objectives are protecting children and beginners to suppress early smoking initiation rates, deconstructing brand appeal to reduce aesthetic attraction, and ensuring that pictorial health warnings remain visually contrasting and effective.

However, in practice, this regulation is seen as potentially causing impacts that contradict its intended purpose. Many aspects have been raised as requiring attention, not only from a health perspective but also regarding the impact on industry, labour, farmers, legal aspects, and the national economy. The potential rise in illegal cigarette numbers has also been voiced by various parties.

The Federation of Cigarette, Tobacco, Food and Beverage Workers Unions (FSP RTMM) SPSI also rejects the standardised packaging regulation. According to the Chairman of the FSP RTMM SPSI Organisation Advisory Board, Sudarto, such regulations place intense, harsh, and even potentially lethal pressure on the tobacco products industry.

Furthermore, the impact of this pressure on the industry will ultimately be felt directly by workers, especially hand-rolled clove cigarette (SKT) labourers.

“It should be noted that in the employment relationship system, some workers in the sector, particularly hand-rolled clove cigarettes, are on piece-rate wages. So they are vulnerable to any policy impacting their daily income. If the goods produced decline, automatically the wages received will also decline,” Sudarto explained during a CNBC Indonesia Coffee Morning titled “Thorough Review of Tobacco Product Packaging Standardisation Rules”, Thursday (9/7/2026).

Response from the Indonesian House of Representatives

Member of Commission IX of the Indonesian House of Representatives from the Nasdem faction, Nurhadi, also highlighted the potential increase in illegal cigarettes. He argued that if this RPMK is still issued, it will cause turmoil.

“Even now, without the issuance, or before the issuance of this RPMK, these plain cigarettes, pardon me, these illegal cigarettes are already rampant. Already rampant,” Nurhadi stressed.

According to him, the articles in the RPMK would actually open the door wide for illegal cigarettes. For this reason, he rejected the regulation because of its partial nature. He stated that policy must consider not only the health aspect but also the economic side.

He also assessed that regulating the shape, colour, font, and font size of packaging far exceeds the Ministry of Health’s authority. This policy also violates trademark intellectual property rights, erasing visual identities that have been built over a long time.

Similarly, Member of Commission VI of the Indonesian House of Representatives from the Democrat faction, Herman Khaeron, said that standardising cigarette packaging could cause down-trading and a switch to illegal cigarettes of up to 42 percent. If there is an increase in illegal cigarettes, then law enforcement must be considered.

“It is futile to ban the legal ones while increasing the illegal ones. Later, the economic goals will not be achieved, and the target of curbing the growth of young smokers will also not be achieved. In the end, nothing will be achieved,” he stated.

Moreover, the potential economic impact could eliminate state revenue, and 1.2 million people could lose their jobs.

“Now, if this happens, the moral responsibility lies with the Ministry of Health to increase state revenue. To increase employment opportunities as a result of the ministry’s regulatory policies. Is there a way to convert this?” said Herman.

He hopes for a more comprehensive policy that does not only look at one particular sector, but rather takes a balanced approach. He also stressed that there must be other ways to support health without killing the cigarette industry.

“How do we protect teenagers from the health dangers of cigarettes? Yes, please, that is the task of the Ministry of Health. But do not then regulate the industrialisation sector, the upstream sector, or regulate tobacco farmers,” he asserted.