Workers and Employers Unite to Protect Tobacco Industry, Warn of Mass Layoffs

Jakarta, CNBC Indonesia - Labour unions in the tobacco industry are warning that derivative regulations of Government Regulation (PP) Number 28 of 2024 on Health could trigger a new wave of layoffs. They argue that plans to standardise cigarette packaging, limit tar and nicotine levels, and ban certain additives will cripple the labour-intensive sector, which supports millions of workers.

Didik Aswandi, Head of Research and Development at the Federation of Tobacco, Cigarette, Food and Beverage Workers Unions (FSP RTMM-SPSI), stated that his organisation represents 242,242 members, approximately 80 percent of whom work in the tobacco industry. He noted that the union has repeatedly voiced objections to various ministries and the House of Representatives, and has even sent letters to President Prabowo Subianto, but has yet to receive a response.

“If this is enacted on 26 July, we are planning to hold a public demonstration and will lay siege to the Ministry of Health. We have already mobilised our members in the regions,” Didik said during a press conference at the Indonesian Employers’ Association (Apindo) headquarters.

He stressed that workers are not anti-regulation, but believe the proposed policies will increase unemployment. “We are not against regulation, but look at the unemployment this will cause in the tobacco industry. We remind you, no one dies from smoking, but people die from hunger,” Didik said.

The union specifically rejects three provisions: the standardisation of packaging colour and shape, the imposition of maximum tar and nicotine levels, and the ban on additives in tobacco products. Didik warned that if the rules are forced through, the federation would stage a protest and “lay siege” to the Ministry of Health.

Sutrisno Iwantono, Head of Public Policy at Apindo, echoed these concerns, stating the regulations would not only harm the cigarette industry but also the entire supply chain, including farmers, traders, and the creative sector. He argued the measures would effectively shut down the legal industry, boost the illegal cigarette trade, and provide no significant health benefits. The coalition is formally requesting President Prabowo Subianto to impose a moratorium on the problematic articles of the regulation, asserting that while they support banning sales to children, the current draft threatens millions of livelihoods and national revenue.