Tobacco Plain Packaging Rejection Gains Momentum Amid Investment Concerns

Opposition to the planned standardisation of tobacco product packaging (plain packaging) in the Draft Health Ministry Regulation (RPMK) has strengthened. Business associations, alongside the Ministry of Industry, argue the policy could disrupt the investment climate and severely impact the tobacco industry and related sectors. The opposition intensified following a public consultation by the Health Ministry on electronic cigarette health warnings scheduled for 25 May 2026. However, the revised title of the regulation does not reflect substantive changes, with plain packaging clauses still drawing criticism from stakeholders for infringing on intellectual property rights. The Ministry of Industry has reiterated its opposition to the packaging standardisation proposal within the discussion of the implementing regulations for Government Regulation No. 28 of 2024 (PP 28/2024). Merrijantij Punguan Pintaria, Director of the Ministry of Industry’s Beverage, Tobacco, and Refreshment Industry, stated that stakeholders had raised objections during the public consultation. “We provided input alongside all stakeholders. We await the final draft incorporating these suggestions. Packaging standardisation is what we reject,” he said in a written statement on Friday (29 May 2026). From the business perspective, the Indonesian Entrepreneurs Association (APINDO) believes the policy requires thorough assessment to avoid investment-unfriendly uncertainty. Sutrisno Iwantono, APINDO’s Public Policy Head, stressed the importance of legal and regulatory certainty for business sustainability. “For businesses, legal certainty, regulatory stability, and investment protection are paramount. Any policy must undergo comprehensive analysis to prevent harming the investment climate,” he added. He noted that the tobacco industry (IHT) has long played a vital role in the economy, including employment generation and connections with other sectors. “We know IHT is a key sector in the economy, capable of absorbing both direct and indirect labour. Any policy will inevitably impact this,” he said. Sutrisno also highlighted the industry’s extensive supply chain linkages with other sectors. “Particularly regarding industrial linkages with downstream sectors such as distribution, retail, and even creative industries,” he added. Regarding implementation, APINDO urged the government to provide adequate transition periods and conduct transparent regulatory impact assessments. “Policies should include sufficient transition periods for businesses to adjust, and the government must carry out open regulatory impact assessments involving business associations,” Sutrisno said. He stressed that while the business community fully supports consumption control efforts, policies must balance industrial stability. “We fully support consumption control measures, but they must also consider law enforcement and national industrial stability,” he added. APINDO also highlighted potential impacts on intellectual property rights, particularly the legally protected value of trademarks. “From a business perspective, trademarks are a crucial part of intellectual property that must be legally protected due to their economic value,” Sutrisno said. Previously, stakeholders had warned that plain packaging and other PP 28/2024 provisions—such as nicotine and tar limits and bans on additives—could cause widespread socio-economic impacts. This is due to the tobacco industry being a labour-intensive sector employing millions and closely linked to other sectors.