Six Million Tobacco Industry Workers Said to Be Affected by Plain Packaging Regulation
The drafting of a Minister of Health Regulation (RPMK) concerning the inclusion of health warnings and information on tobacco and electronic cigarette products has drawn sharp criticism from various elements of society. This technical rule, derived from Government Regulation (PP) Number 28 of 2024, is considered not to have thoroughly considered the socio-economic impact, particularly for the six million workers who depend on the tobacco products industry (IHT) supply chain.
The Chairman of the Bahtsul Masail Institute of the Nahdlatul Ulama Executive Board (PBNU), KH Mahbub Ma’afi Romdhon, stressed that policymaking institutions must not simply impose bans without considering the long-term effects on the livelihoods of people in the tobacco sector. ‘The state must not be negligent. Any government policy must consider intellectual input. Unfortunately, those directly affected are often not involved. This is not fair. This RPMK draft does not consider economic sustainability,’ Mahbub said in Jakarta on Thursday (2/7/2026).
From a constitutional law perspective, Sebelas Maret University (UNS) legal expert Djatmiko Anom Husodo emphasised the importance of regulatory impact mitigation instruments before the rule is enacted. Ideal public policy must prioritise the principles of proportionality, prudence, evidence-based decision-making, and information transparency. Djatmiko reminded that the draft regulation concerning the tobacco ecosystem, including the plan for standardised packaging without brand attributes, must be implementative and adaptive without causing sudden socio-economic disruption. ‘The IHT is a long-existing economic ecosystem, so the impact on the interests within it must be properly calculated. The grandfather clause principle applies here, where a new regulation cannot simply negate long-standing legal or operational rights,’ Djatmiko explained.
Through this draft standardised packaging regulation initiated by the Ministry of Health, the logos, colours, and distinctive designs of cigarette brands will be removed. All cigarette packs will be made uniform to reduce visual appeal, particularly for new and young smokers. From a health perspective, this policy is believed to reduce the appeal of cigarettes, especially among the youth. However, many parties warn of the knock-on effects on the packaging, printing, and tobacco farming industries, as well as the millions of workers who depend on this sector. Government data shows approximately 1.58 million people work directly in the tobacco industry. When calculated from upstream to downstream, the supply chain supports around six million people. Meanwhile, tobacco excise revenue reached approximately Rp221.7 trillion in 2025.
Labour unions assess that the policy has the potential to cause far greater economic consequences than the benefits claimed by the government. Ahead of the July 2026 implementation deadline, the Lentera Anak Foundation has appreciated the Ministry of Health’s commitment to finalising the draft regulation on cigarettes. The discourse on standardised packaging for tobacco products is considered a violation of constitutional rights because it restricts information on products legally circulating in society. These various regulations are feared to pressure the sustainability of a strategic sector that significantly contributes to employment and the national economy. The Indonesian Employers’ Association (APINDO) also highlighted the potential impact on intellectual property rights, particularly regarding trademark values that have been legally protected.