Indonesian Political, Business & Finance News

National Tobacco Sector Stakeholders Request Government Review of Realistic Nicotine and Tar Limits

| | Source: MEDIA_INDONESIA Translated from Indonesian | Regulation
National Tobacco Sector Stakeholders Request Government Review of Realistic Nicotine and Tar Limits
Image: MEDIA_INDONESIA

A team from the Coordinating Ministry for Human Development and Culture presented a proposal on the application of nicotine and tar limits at a hearing on 10 March 2026. The drafting team proposed maximum limits for nicotine and tar that are significantly lower, mirroring standards adopted by European Union countries. The establishment of these limits implements the mandate set out in Government Regulation (PP) Number 28 of 2024.

Industry associations view the proposed limits as an overly severe constraint that would cripple the entire tobacco products industry (IHT) ecosystem from upstream to downstream operations. The association regards this policy initiative as posing considerable risks of economic disruption, whilst simultaneously reducing the absorption of locally produced tobacco and clove.

The General Chairman of the Union of Indonesian Cigarette Manufacturers (GAPPRI), Henry Najoan, noted that the tobacco products industry currently operates under more than 500 regulations at both national and regional levels. The introduction of additional restrictive regulations would therefore stifle business continuity.

Najoan argued that these measures contradict the fiscal policies promoted by the government. He contended that the approach focuses on prohibition without providing practical solutions for industry actors who have consistently complied with existing regulations.

According to Najoan, plans to restrict nicotine and tar levels would have a direct impact on the absorption of locally sourced raw materials. The national tobacco industry currently commands approximately 97% market share, predominantly utilising tobacco produced by domestic farmers that naturally exhibits high nicotine content. Additionally, clove cigarette production absorbs nearly all of the nation’s clove harvest. Tobacco and clove are the primary raw materials for clove cigarette manufacturing. Given these considerations, the proposed nicotine and tar limits would make it difficult for cigarette products that absorb substantial quantities of local agricultural output to meet the required specifications.

“If the public consultation concerning maximum tar and nicotine limits is implemented, the industry will undoubtedly face catastrophe. The tobacco industry that dominates the market absorbs tobacco sourced from domestic farmers,” Najoan stated during the public consultation forum on determining maximum nicotine and tar limits, held by the Coordinating Ministry for Human Development and Culture in Jakarta.

Additionally, Najoan highlighted intense global pressure from international health organisations such as the WHO through the Framework Convention on Tobacco Control (FCTC). He lamented the government’s tendency to adopt global regulations wholesale without considering the unique characteristics of Indonesia’s domestic tobacco industry.

On the same occasion, the General Chairman of the Union of Indonesian White Cigarette Producers (GAPRINDO), Benny Wachjudi, expressed concerns regarding the socioeconomic impacts resulting from this policy initiative. He emphasised that the tobacco products industry is already conscious of the negative externalities of tobacco products and has complied with hundreds of applicable regulations for the tobacco sector.

Should nicotine limits be reduced to unrealistic levels, for example one milligram, then tobacco from major producing regions such as Java would no longer be absorbed by manufacturers.

Wachjudi noted that average tar levels in hand-rolled clove cigarettes currently range between 34 and 52 milligrams, whilst the government plan seeks to reduce this to 10 milligrams. This figure represents a significant departure from technical production realities and current Indonesian National Standards (SNI).

The proposed reduction is characterised as an attempt to eliminate the clove cigarette industry, which represents a labour-intensive sector and constitutes a national cultural heritage. “Should tar restrictions be implemented, it is certain that clove cigarettes will perish,” Wachjudi stated unequivocally.

Furthermore, he explained that restrictions on additives such as menthol would also impact the entire tobacco ecosystem. Ultimately, state revenue from tobacco excise tax (CHT), valued at hundreds of trillions of rupiah annually, would face a drastic decline should the proposed restrictions on nicotine and tar content in tobacco products be enacted.

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