Indonesian House of Representatives Rejects Ministry of Health's Plain Packaging Proposal

A number of legislators have repeatedly voiced their support for maintaining the national tobacco ecosystem. Regulations that threaten the sustainability of the tobacco sector—a labour-intensive industry—such as the implementation of plain packaging, are deemed potentially harmful to the Indonesian economy and could trigger mass layoffs.

In an official statement, the Ministry of Health (Kemenkes) is proceeding with the Draft Ministerial Regulation concerning the inclusion of health warnings and information on tobacco and electronic cigarette products. However, several members of the House of Representatives (DPR RI) across various commissions have instructed that the plain packaging rule be reviewed and not implemented.

The Deputy Speaker of the House, Sufmi Dasco Ahmad, stated the importance of finding a comprehensive and sustainable solution to ensure the welfare of tobacco farmers. He noted that farmers are the primary party affected by plain packaging, as it is likely to reduce the absorption of harvests by tobacco processing factories. According to Dasco, protecting tobacco farmers is a complex issue involving economic, social, cultural, and health aspects. “It is vital to find a balanced solution between protecting tobacco farmers and reducing the harmful impacts of tobacco consumption,” Dasco stated.

On the other hand, the Deputy Chair of Commission VII, Lamhot Sinaga, observed that elements of the supporting industry within the large tobacco supply chain, which employs many Indonesians, could disappear if plain packaging is applied. He expressed disagreement with the proposal, which is based on the Framework Convention on Tobacco Control (FCTC) used in several other countries, stating, “From an industrial perspective, this is certainly not profitable.”

Sinaga emphasised that the plain packaging rule could hit the entire supply chain and potentially trigger waves of mass layoffs amidst a still-vulnerable economic condition, noting that the industry makes a significant contribution to the national economy.

Member of Commission XI, Puteri Komarundin, also requested that the plan for uniform packaging for tobacco and e-cigarette products be studied further, considering the potential negative impacts. She pointed to Ministry of Manpower data showing that layoffs between January and April 2026 reached 15,425 people, highlighting the need for a comprehensive review.

The concerns regarding the tobacco sector were also highlighted by Commission VII member Novita Hardini, who noted that the role of the Integrated Tobacco Industry (IHT) in agricultural downstreaming cannot be ignored. She argued that IHT is a form of downstreaming that helps achieve the 8% economic growth target by absorbing labour in manufacturing.

Meanwhile, Commission IX member Nuradi urged cross-sectoral dialogue so that policies are not based solely on health considerations. He requested the Ministry of Health to consider the overall social and economic impacts, as no other sector is currently able to absorb labour as effectively as the IHT. “The IHT is a complex sector that contributes greatly to the state, both through excise revenue and employment. Therefore, do not treat this industry like a stepchild,” said Nuradi.

Similarly, Commission IV member Daniel Johan likened the IHT to a stepchild being pressured to produce as much money as possible to please its step-parent. He noted that while the regulation targets processed tobacco products, the impact would ripple down to farmers, as the industry is a chain involving tobacco and clove farmers, factory workers, producers, and distributors.

Commission IV member Firman Subagyo noted the lack of legal protection for tobacco farmers. He urged the government to ensure farmers can be productive and receive clear legal protection, given that the sector is labour-intensive. Data from the Ministry of Agriculture shows that tobacco cultivation supports nearly 500,000 families, involving approximately 1.8 to 2 million people directly. Furthermore, data from the Coordinating Ministry for Economic Affairs records around 1,700 active IHT business units that directly employ over 140,000 workers.