Indonesian Political, Business & Finance News

Restrictions on Nicotine and Tar Content Must Consider Local Conditions

| | Source: MEDIA_INDONESIA Translated from Indonesian | Regulation
Restrictions on Nicotine and Tar Content Must Consider Local Conditions
Image: MEDIA_INDONESIA

The National Leadership Council of the Indonesian Tobacco Farmers Association (APTI) has raised concerns about the government’s plan to restrict nicotine and tar content in tobacco products. This policy proposal is one of the provisions mandated in Government Regulation (PP) 28 of 2024 on the Implementation of Law 17 of 2023 on Health. The association views the proposed restriction on nicotine and tar levels as potentially damaging to the socio-economic wellbeing of local tobacco farmers across various regions in Indonesia.

Agus Parmuji, Chairman of the APTI National Leadership Council, stated that policies emphasising global standards without considering domestic conditions risk placing pressure on Indonesian tobacco farmers. He emphasised that any government policy must take into account the livelihoods of farmers and communities dependent on the tobacco sector.

“Global standards should not simply be applied in Indonesia without considering local conditions. Tobacco in Indonesia is also part of our cultural heritage and a source of livelihood for communities,” he said during a public hearing on the Study on Determining Maximum Nicotine and Tar Limits, organised by the Coordinating Ministry for Human Development and Culture (Kemenko PMK).

Agus further highlighted that the proposed policy poses a threat to farmers in major tobacco-producing regions, particularly in East Java, Madura, and Temanggung. Without proper preparation of a supportive ecosystem, tobacco farmers would face serious economic pressure that could lead to an economic crisis.

In an effort to preserve Indonesia’s tobacco sector, the association has urged the government to pursue tobacco product diversification, develop value-added derivative products, and implement farmer support programmes. These measures are intended to protect tobacco farmers and safeguard the national Gross Domestic Product (GDP), which is partly supported by the Tobacco Processing Industry (IHT) sector.

In 2024, for example, the IHT contributed approximately 4.22% to national GDP, totalling Rp158.72 trillion, and is projected to continue growing. The sector is recognised as supporting labour-intensive economic activity, absorbing millions of workers across the supply chain.

“We farmers face the prospect of a second economic crisis if this policy on restricting nicotine and tar is not carefully prepared,” Agus said. “We therefore demand a fair and appropriate policy for farmers. If tobacco is to be utilised for other products such as food, cosmetics or others, the government must establish the necessary infrastructure down to the regional level,” he added.

The public hearing on determining maximum nicotine and tar limits, organised by the Coordinating Ministry for Human Development and Culture, forms part of the policy formulation process, where affected stakeholders present their views on regulating nicotine and tar levels in tobacco products.

The forum is part of the policy development process mandated by PP 28/2024, which implements Law 17 of 2023 on Health, requiring the establishment of maximum limits on nicotine and tar content. The forum was attended by representatives from relevant government agencies and ministries, academics, industry players, workers’ organisations, and farmer associations to provide input on the study results before the policy is discussed further in inter-ministerial coordination processes and at government decision-making levels.

The Coordinating Ministry for Human Development and Culture stated that the study remains in the discussion and stakeholder input collection stage. APTI hopes the process will consider the interests of all parties, so that the resulting policy is oriented not only towards health aspects, but also towards maintaining economic sustainability in the tobacco sector.

“We believe there is always a middle ground. What is important is that this policy is examined fairly, wisely, and involves all affected parties,” concluded Agus.

The Centre for Research and Community Service at Sebelas Maret University has highlighted the tension between health considerations and economic protection in tobacco regulations. Overly strict, overlapping, or disproportionate policies are seen as triggers for increased redundancy risks in labour-intensive sectors. It is hoped that the momentum of this tax moratorium is followed by more targeted distribution of the Revenue-Sharing Fund for Tobacco Processing Industry Excise (DBHCHT). The tobacco industry has been weakened by overlapping regulations and conflicting policies, which place increasing pressure on farmers. The national Tobacco Processing Industry (IHT) has demonstrated significant export performance growth year on year.

Heru D Wardhana, Vice-Chairman of the Indonesian Clove Farmers Association (APCI), explained that the average nicotine content of Indonesian tobacco is above 3–5 per cent, with some varieties even higher.

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