Ministry of Manpower Urged to Block ‘Regulatory Tsunami’ Threatening Mass Layoffs of Millions of Tobacco Workers
The Federation of Tobacco, Food, and Beverage Workers’ Unions of All Indonesia (FSP RTMM-SPSI) is moving swiftly to anticipate the threat of mass layoffs within the Tobacco Products Industry (IHT). Led by General Chairman Henry Wardana, the union held a crucial audience with the Ministry of Manpower on 25 May 2026.
During the meeting, the delegation was received by the Deputy Minister of Manpower, Afriansyah Noor, and the Director of Institutional Affairs and Industrial Relations Dispute Prevention (KPHI), Decky Haedar Ulum. Henry Wardana emphasised that the legal tobacco industry is currently facing a ‘regulatory tsunami’ from various ministries, which has the potential to trigger a storm of mass layoffs, particularly for workers in the Hand-Rolled Clove Cigarette (SKT) sector.
‘We request that the Ministry of Manpower does not only focus on evaluating internal labour regulations, but must proactively evaluate sectoral regulations from other ministries that directly impact the destruction of jobs. Protecting labour is the primary duty of the Ministry of Manpower,’ stated Henry Wardana.
The FSP RTMM-SPSI highlighted three crucial regulations deemed a threat to the livelihoods of 1.2 million legal cigarette factory workers, many of whom are women with limited education serving as the backbone of their families:
Rejection of Cigarette Packaging Standardisation (Rpermenkes): The proposed Ministry of Health regulation to implement plain packaging is viewed as erroneous. This policy is predicted to trigger a surge in illegal cigarettes from the current 7–11% to 20–30%, leading to a drastic drop in legal production and state revenue.
Evaluation of New Excise Layers for Machine-Rolled Clove Cigarettes (SKM): The plan to apply new excise layers for SKM at rates approaching SKT rates could trigger a consumer exodus. This threatens a significant drop in SKT production, potentially leading to mass layoffs for 1 million SKT workers.
Rejection of Tar and Nicotine Limits: A study by the Coordinating Ministry for Human Development and Empowerment (Kemenko PMK) recommended limiting Tar to 10mg and Nicotine to 1mg, adopting European standards. The union argues this is unfair as local Indonesian tobacco naturally possesses higher nicotine levels. If enforced, traditional Indonesian clove cigarettes could face extinction, threatening 1 million SKT workers and 1.6 million local tobacco farmers.
In response, Deputy Minister Afriansyah Noor and Director Decky Haedar Ulum committed to overseeing this issue. The Ministry of Manpower promised to coordinate these concerns with the relevant ministries, including the Ministry of Finance, the Ministry of Health, and the Coordinating Ministry for Human Development and Empowerment.