Indonesian Political, Business & Finance News

Street Vendors Reject Plain Packaging Rules in Health Ministry Draft Regulation

| | Source: MEDIA_INDONESIA Translated from Indonesian | Regulation
Street Vendors Reject Plain Packaging Rules in Health Ministry Draft Regulation
Image: MEDIA_INDONESIA

The Health Ministry’s (Kemenkes) plan to finalise standardised cigarette packaging rules in the Draft Health Minister Regulation (RPMK) has faced widespread opposition from downstream sectors. The Indonesian Street Vendor Association (APKLI) has firmly rejected the clauses requiring uniform packaging, arguing it would devastate the economies of millions of small traders nationwide. APKLI Chairman Ali Mahsun expressed disappointment at the Health Ministry’s apparent disregard for small business owners, citing the exclusion of street vendor representatives from a recent public consultation. Ali explained that mandating uniform packaging using Pantone 448C colour, standardising font, shape, and imagery would harm the market. The plain packaging policy, he said, would benefit illegal cigarette producers who evade taxes. ‘Traders are severely disadvantaged when products lack differentiation. Enforcing plain packaging with Pantone 448C, uniform fonts, shapes, and images will erode legal cigarette sales as illegal products flood the market,’ Ali stated in a written release on Friday (29 May). According to APKLI data, the packaging standardisation policy could reduce turnover for around 3.9 million downstream businesses, from small vendors, convenience stores, street hawkers to other MSMEs. For traditional convenience stores, tobacco products are the main commodity, contributing over 50% of daily sales. Ali also questioned the substantive shift in the draft regulation. The RPMK should focus on health warning requirements rather than expanding into packaging standardisation that disrupts trade. ‘The RPMK should serve as a balance between health and people’s economic interests in managing Indonesia’s tobacco ecosystem. Given that this ecosystem is a cultural and economic heritage of the nation, it should be preserved, developed, and protected from decline or extinction. Yet tobacco is constantly suppressed, curtailed, and even targeted for eradication through regulations,’ Ali stressed. Ali urged the government to approach regulation discussions with wisdom, fairness, and proportionality to find a balanced middle ground between health targets and the livelihoods of tens of millions of citizens. Especially as the economy of the lower class remains weak due to unsteady purchasing power and global economic pressures. He reminded policymakers not to overlook the significant contribution of the national tobacco ecosystem to national stability, in terms of employment and state revenue. ‘Do not forget that Indonesia’s tobacco ecosystem makes a large and strategic contribution to national governance. Over 10% of total state revenue comes from tobacco excise and taxes, creating 6 million jobs from upstream to downstream,’ Ali concluded.

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