Panggah Warns Tobacco Regulations Could Trigger Import Surge

Jakarta – Deputy Chairman of the House of Representatives (DPR) Commission IV, Panggah Susanto, has urged a comprehensive review of Government Regulation Number 28 of 2024, a derivative of the Health Law, particularly regarding provisions on tar and nicotine levels of 1 mg per stick and standardised cigarette packaging. He warned that the regulation could suppress local tobacco farmers and potentially increase tobacco imports. Panggah noted that Indonesian tobacco, grown in tropical regions, naturally possesses higher tar and nicotine characteristics compared to tobacco from subtropical or four-season countries such as China, India, Brazil, and the United States. He expressed concern that the 1 mg tar and nicotine limit could reduce the absorption of local tobacco and open the door to rising imports. Panggah also highlighted the national trend of increasing tobacco imports. According to data compiled from the Central Statistics Agency (BPS), Indonesian tobacco imports rose from 110.9 thousand tonnes, valued at US$580.3 million, in 2019 to 167.8 thousand tonnes, valued at US$911.2 million, in 2024. ‘We must not view the tobacco sector from just one side. There are around 2.5 million tobacco farmers, 300,000 industrial workers, and more than 6 million workers in related sectors who depend on this ecosystem, not to mention the state revenue contribution of around Rp200 trillion in excise and other taxes,’ Panggah said in a statement on Friday, 24 July 2026. The remarks were made as Commission IV received an audience with the tobacco farming community, tobacco business operators, and the Chair and members of the Temanggung Regency DPRD. Commission IV is therefore encouraging the government to find a balance between health aspects, farmer protection, industry sustainability, employment, and state revenue. Tobacco policy must be formulated with adequate study to avoid creating new problems for local farmers and the national economy.