Ministry Warns Plain Cigarette Packaging Rule Could Destabilise 1.2 Million Workers

The Ministry of Manpower (Kemnaker) has warned that a draft regulation to standardise plain cigarette packaging could adversely affect workers in the tobacco sector. “Workers in the tobacco sector could become victims of the Draft Minister of Health Regulation (RPMK) which will standardise plain packaging using Pantone 448C,” said Decky Haedar Ulum, Director of Institutional and Industrial Relations Dispute Prevention at the Ministry of Manpower, in Jakarta on Friday.

He noted that the tobacco products industry (IHT) is a labour-intensive sector that absorbs a large number of informal workers, the majority of whom are women. Amid the current economic conditions, the IHT’s contribution is substantial, both in terms of state revenue through tobacco excise, which amounts to approximately Rp217 trillion, and employment. “The IHT is a massive economic anchor for employment. The draft plain packaging regulation will claim 1.2 million victims, especially workers in the hand-rolled kretek (SKT) sector. These are employees who have served for decades,” Decky explained.

To illustrate, Decky described that a single production line in an SKT factory employs an average of 400 to 500 workers, predominantly women, who are often the backbone of their families. He therefore requested that the plain packaging plan be reconsidered before implementation. “The IHT’s position in job creation is crucial. We must think about and prepare an exit strategy together,” he said.

Meanwhile, Sudarto, Chairman of the Advisory Board of the Federation of Cigarette, Tobacco, Food and Beverage Workers Unions (FSPRTMM SPSI), asserted that tobacco workers bear the burden of various government regulations. He stated that the risk of layoffs, particularly in the SKT sector, is very high. “SKT workers are the ones who will directly feel the impact of the plain packaging draft. Remember, these workers are paid daily wages. When the industry’s performance declines, their wages automatically decline,” he said.

Consequently, the immediate consequences for workers from this standardised packaging rule will be reduced wages and potential layoffs. “Therefore, this draft regulation must receive serious attention from the government,” he stressed. Sudarto added that regulatory drafts should not contradict efforts to maintain economic growth and employment. “Please pay serious attention to the employment aspect. At the very least, the principle of balance must be maintained. We hope the IHT is given room to grow, which in turn provides space for the welfare of the workforce,” he concluded.