Tobacco Product Standardisation Rules Enter Cross-Ministry Harmonisation Phase

Opposition to the planned implementation of plain packaging or standardised cigarette packaging in the Draft Minister of Health Regulation (RPMK) on Health Warnings and Information on Tobacco Products and Electronic Cigarettes continues to be voiced by various affected parties. Amid the controversy, the Ministry of Health has stated that the draft regulation has entered the cross-ministerial and institutional harmonisation stage. A number of stakeholders claim they have not received any updates or follow-up invitations since the public consultation held on 25 May 2026, despite having submitted thousands of objections via the provided link. One objection came from labour unions. The Chairman of the Regional Leadership of the Federation of Cigarette, Tobacco, Food and Beverage Workers Unions–All Indonesia Workers Union for the Special Region of Yogyakarta (PD FSP RTMM-SPSI DIY), Waljid Budi Lestarianto, assessed that the substance regarding packaging standardisation in the RPMK could potentially cause economic damage far greater than the claimed public health benefits. He argued that the government cannot view the policy solely from a health perspective, as the tobacco industry is a vast ecosystem supporting millions of livelihoods, from tobacco and clove farmers, cigarette factory workers, and packaging printing industries, to distribution, logistics, and small traders. “Based on data from the Ministry of Industry, the tobacco products industry absorbs around 6 million workers from upstream to downstream. Therefore, any policy that has the potential to suppress the legal industry must be calculated comprehensively regarding its impact on employment, investment, and state revenue,” said Waljid. He noted that the tobacco products sector is also one of the largest contributors to state revenue through excise duties. In 2025, tobacco excise revenue was recorded at exceeding Rp230 trillion, an increase from around Rp216 trillion in 2024. Waljid warned that if the industry is pressured, the state stands to lose tens of trillions of rupiah in potential revenue, which would be exacerbated by the proliferation of illegal cigarettes. He argued that standardised packaging would eliminate the visual identity of legal products, making it increasingly difficult for consumers to distinguish between official and counterfeit cigarettes. “If all packaging is made uniform, illegal products will find it even easier to enter the market. This is not a solution, but a new problem,” he stressed. According to his records, up to September 2025, the Directorate General of Customs and Excise had seized approximately 8.16 million sticks of illegal cigarettes in various enforcement operations. He warned that if illegal products grow further, the legal industry will face greater pressure as it must continue to bear excise duties and other obligations. The impact, Waljid continued, would not only affect state revenue but could also trigger a decline in production, disrupt the investment climate, and increase the risk of layoffs, particularly in the labour-intensive hand-rolled kretek cigarette (SKT) sector. He firmly rejected the packaging standardisation plan in the RPMK. Meanwhile, Ministry of Health spokesperson Widyawati stated that the drafting of the RPMK has progressed to an advanced stage. The ministry has conducted three public consultations, with the final meeting held on 25 May 2026. She explained that all input submitted through public consultation forums and letters from various stakeholders has been compiled to refine the substance of the regulation. The next stage is the harmonisation process between ministries and institutions, coordinated by the Ministry of Law, to finalise and consolidate the concept before the regulation is enacted. “The Ministry of Health has involved relevant ministries and institutions as well as stakeholders in a gradual and comprehensive manner,” she said. She added that the ministry had previously conducted pre-harmonisation with several ministries, including the Coordinating Ministry for Human Development and Culture, the Coordinating Ministry for Economic Affairs, the Ministry of Industry, the Ministry of Finance, the Ministry of Trade, the National Development Planning Agency (Bappenas), and the Food and Drug Supervisory Agency (BPOM). In addition, the Ministry of Health held bilateral meetings with the Ministry of Finance to discuss the policy’s linkages with fiscal aspects, consumption control, state revenue, and the supervision of illegal cigarettes.