Indonesian Political, Business & Finance News

Plain Cigarette Packaging Plan Draws Criticism, Deemed a Threat to National Economy

| Source: VIVA Translated from Indonesian | Economy
Plain Cigarette Packaging Plan Draws Criticism, Deemed a Threat to National Economy
Image: VIVA

A plan by the Ministry of Health to enforce standardised packaging on tobacco products and e-cigarettes has drawn rejection, with critics saying it ignores economic sustainability. The regulation, outlined in a Draft Minister of Health Regulation, mandates uniformity in shape, font, and the use of Pantone 448C colour, which is seen as potentially destroying the entire tobacco industry ecosystem from upstream to downstream.

Constitutional law observer from UIN Sunan Kalijaga Yogyakarta, Gugun El Guyanie, assessed that the drafting process was unbalanced and dominated by a single party. “There is a flaw in the policy-making process. The main problem is the context of regulation, but the health regime dominates, while leading sectors such as agriculture, industry, trade, manpower, and excise were not involved fairly and proportionally. The future impact on the tobacco ecosystem will be immense,” he said.

He further highlighted the overlapping nature of the draft policy from various legal aspects, including legal substance, structure, culture, and system. According to him, the policy appears to ignore the characteristics of regions that have long relied on the tobacco industry. “Policymakers do not have a uniform understanding and fail to see the specific conditions of regions, including tobacco production centres. This draft regulation cannot simply eliminate and discriminate,” he stated.

The tobacco sector plays a vital role, absorbing around 6 million workers and contributing up to Rp 217 trillion in state revenue. Therefore, the Ministry of Health is urged to consider the regulation’s impact on sovereignty, national self-reliance, and the economy. “The sustainability of the national economy is under threat. Multiple sectors will feel the negative impact, with many small and medium industries, including the hand-rolled kretek segment, facing bankruptcy. From a legal certainty perspective, law enforcement will open a huge gap, including for the circulation of illegal cigarettes,” Gugun asserted.

A similar sentiment was voiced by the Chairman of P3M, KH Sarmidi Husna. He cautioned that the governance of tobacco products should not be viewed solely through a health lens. “All technical regulations derived from Government Regulation No. 28 of 2024 must be studied together because tobacco concerns the livelihoods of many people, both directly and indirectly. Our fear is that this prohibition will have long-term negative effects that contradict higher laws and regulations,” Sarmidi Husna said.

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