Legislator Warns Nicotine and Tar Content Restrictions Threaten Millions of Farmers and Spark Mass Redundancies
The government’s plan to tighten regulations on maximum nicotine and tar content has provoked sharp controversy, as it is deemed capable of threatening the sustainability of Indonesia’s tobacco products industry (IHT) ecosystem. This policy proposal forms part of PP 28/2024, which implements UU 17/2023 on Health. A drafting team established under Permenko PMK 2/2025 has been tasked with determining proposed maximum limits for tar and nicotine content.
“The policy proposal to restrict nicotine and tar content is deeply concerning,” said Yahya Zaini, Deputy Chairman of Commission IX of the Indonesian House of Representatives. “This strategic ecosystem involves millions of people, from factory workers to farmers. Overly strict content restrictions without considering the characteristics of local tobacco risk killing the domestic industry, which makes a substantial contribution to employment.”
Zaini expressed opposition to the policy proposal because regulations limiting tar and nicotine content, as well as additives in tobacco products, could devastate the sector from upstream to downstream operations. The policy emerges as the industry attempts to recover from other regulatory pressures, including excise taxation rules and various control regulations.
Zaini argued that restricting nicotine and tar content in tobacco products merely adds burden and is counterproductive to the people’s economy. He further warned that the policy’s impact would create business uncertainty that could trigger redundancies (PHK).
He reminded stakeholders that tightening tobacco product regulations must not overlook the IHT sector’s contribution to state revenues through excise taxes, which reach hundreds of trillions annually. This substantial contribution is at risk of reduction amid the country’s difficult fiscal condition.
Furthermore, Zaini highlighted overlapping regulations that confuse business actors regarding nicotine and tar content. The National Standardisation Body (BSN) has long established Indonesian National Standards (SNI) for each segment of tobacco products through a comprehensive process involving various stakeholders.
According to him, changes to the proposed regulations could create unhealthy business competition. Overly restrictive standards tend to benefit certain companies and harm small and medium enterprises, including hand-rolled cigarettes (SKT), which is a labour-intensive sector.
“Regulations must not kill Indonesia’s authentic clove cigarette industry, which is being gradually destroyed administratively,” he stressed.
Zaini urged the government to reconsider the policy proposal from multiple perspectives. He proposed that the government prioritise cross-sector dialogue and involve many affected parties, including farmers, workers, and industry players, to ensure the proposed regulations can be properly implemented.