Challenges and Calls for Regulation in Indonesia's Tobacco Industry

Regulations by 2FIRSTS.ai
May.10.2024
Challenges and Calls for Regulation in Indonesia's Tobacco Industry
AMTI Chairman Budhyman expressed concerns at a Jakarta meeting about Indonesia's tobacco ecosystem being threatened by restrictive regulations.

According to a report from DetikFinance on May 9th, Budhyman, the chairman of the Indonesian Tobacco Community Alliance (AMTI), spoke at a meeting in Jakarta, stating that although the tobacco products industry continues to contribute to the country's development despite facing challenges, many regulations severely limit the tobacco ecosystem and could potentially lead to a total ban. He called on the government to consider the voices of the tobacco ecosystem stakeholders when addressing regulatory issues.

 

All elements of the tobacco ecosystem, from upstream to downstream, including tobacco farmers, clove farmers, workers, manufacturers, and consumers, are committed to maintaining the sustainability of this commodity. Budhyman, the chairman of the Indonesian Tobacco Communities Alliance (AMTI), stated that on the other hand, there are still many policies that could completely ban the tobacco ecosystem. Therefore, all elements are in consensus in calling for participation in the formulation of regulations to manage the tobacco ecosystem.

 

However, it is important to remember that six million people's livelihoods directly depend on the tobacco ecosystem. If any element of it is disrupted, it is certain that everyone will feel the impact. Therefore, we hope the government can acknowledge the willingness of the upstream and downstream tobacco industry to comply with regulations surrounding this system," emphasized Budiman.

 

In addition, Suyana, the chairman of the West Java branch of the Indonesian Tobacco Farmers Association (APTI), expressed that tobacco is a commodity that people both hate and long for. As the most upstream element, tobacco farmers fear that they will lose their identity and land due to the endless oppression of Indonesian tobacco regulations.

 

We farmers always comply with the regulations. However, we feel like the government is absent and not protecting farmers. Indonesia is an agricultural country, but farmers are prohibited from growing tobacco. So, where exactly is the government's role?" he said.

 

In downstream, the Chairman of the Indonesian Tobacco Producers Association (Gaprindo), Benny Wajudi, stated that the situation of the tobacco products industry (IHT) is not good at the moment. Being a complex industry, IHT is always surrounded by regulations gradually treating tobacco as a legal product.

 

However, the country's income still depends on tobacco taxes (CHT). Excessive regulations, including constantly increasing fiscal policies (raising CHT), do not necessarily mean that the prevalence of smoking will decrease. Instead, illicit tobacco becomes more rampant, ultimately affecting the country's income," Benny emphasized.

 

Sulaimi Bahar, chairman of the Tobacco Companies Alliance (Gapero), also shares the same concerns. He mentioned that the current situation is particularly challenging for the tobacco product industry, especially for small-scale hand-rolled cigarette manufacturers. Despite some growth, existing regulations continue to weigh heavily on small businesses.

 

We are very scared. Slowly but surely, the small SKT company that is struggling to survive will have nothing left. We hope the government can look at the current situation fairly," Sulami said.

 

We welcome news tips, article submissions, interview requests, or comments on this piece.

Please contact us at info@2firsts.com, or reach out to Alan Zhao, CEO of 2Firsts, on LinkedIn


Notice

1.  This article is intended solely for professional research purposes related to industry, technology, and policy. Any references to brands or products are made purely for objective description and do not constitute any form of endorsement, recommendation, or promotion by 2Firsts.

2.  The use of nicotine-containing products — including, but not limited to, cigarettes, e-cigarettes, nicotine pouchand heated tobacco products — carries significant health risks. Users are responsible for complying with all applicable laws and regulations in their respective jurisdictions.

3.  This article is not intended to serve as the basis for any investment decisions or financial advice. 2Firsts assumes no direct or indirect liability for any inaccuracies or errors in the content.

4.  Access to this article is strictly prohibited for individuals below the legal age in their jurisdiction.

 

Copyright

 

This article is either an original work created by 2Firsts or a reproduction from third-party sources with proper attribution. All copyrights and usage rights belong to 2Firsts or the original content provider. Unauthorized reproduction, distribution, or any other form of unauthorized use by any individual or organization is strictly prohibited. Violators will be held legally accountable.

For copyright-related inquiries, please contact: info@2firsts.com

 

AI Assistance Disclaimer

 

This article may have been enhanced using AI tools to improve translation and editorial efficiency. However, due to technical limitations, inaccuracies may occur. Readers are encouraged to refer to the cited sources for the most accurate information.

We welcome any corrections or feedback. Please contact us at: info@2firsts.com

From Nicotine Pouches to Soft Candy Forms: China Tobacco Hubei explores adjustable-release oral nicotine products
From Nicotine Pouches to Soft Candy Forms: China Tobacco Hubei explores adjustable-release oral nicotine products
China-based China Tobacco Hubei Industrial Co., Ltd. has filed a patent application covering an oral nicotine product and its preparation method. The patent proposes a soft candy-shaped oral nicotine product containing nicotine ingredients, gelling agents, sweeteners and alkaline pH regulators. Through formulation adjustments and homogeneous or dual-layer structures, the technology aims to achieve different nicotine release profiles. The filing reflects exploration of new oral nicotine product formats and controlled nicotine delivery approaches.
Aug.06
China’s Jiangsu Tobacco Monopoly Bureau and Drug Regulator Target Illegal Vape Sales Disguised as Medical Devices, Define Six Violations
China’s Jiangsu Tobacco Monopoly Bureau and Drug Regulator Target Illegal Vape Sales Disguised as Medical Devices, Define Six Violations
China’s Jiangsu Tobacco Monopoly Bureau and Jiangsu Provincial Medical Products Administration have issued a joint notice targeting illegal production and sales of vape products disguised as medical devices. The notice identifies six categories of violations, including obtaining medical licenses through false materials, misusing medical device credentials, expanding production beyond approved scopes, and using medical device-related online platforms to promote or sell vape products. The action is based on China’s tobacco and medical device regulations and aims to strengthen vape oversight and consumer protection.
Aug.04
Product | ZAR Launches Coffee AirPouch, Expanding Pouch Format Into Caffeine Products
Product | ZAR Launches Coffee AirPouch, Expanding Pouch Format Into Caffeine Products
ZAR has introduced Coffee AirPouch, a nicotine-free caffeine pouch product that extends the brand’s AirPouch format into the functional consumer category. Each pouch contains 50mg of natural caffeine and features a coffee flavor, highlighting how pouch-based products are expanding beyond traditional nicotine applications into broader lifestyle and energy-use scenarios.
Market
Jul.13 by 2Firsts Perspectives
FDA Sued Over Allowing Some Unauthorized Vapes and Nicotine Pouches to Stay on Market
FDA Sued Over Allowing Some Unauthorized Vapes and Nicotine Pouches to Stay on Market
Public health groups, pediatricians and parents sued the U.S. Food and Drug Administration on July 14, 2026, challenging a May enforcement guidance that they say allows unauthorized e-cigarettes and nicotine pouches to remain on the market while applications are under review.
Jul.15
BAT Expands ITC Infotech Partnership Across Poland, Romania and India to Advance AI
BAT Expands ITC Infotech Partnership Across Poland, Romania and India to Advance AI
ITC Infotech has expanded its multi-year strategic technology partnership with British American Tobacco (BAT), providing technology services across Poland, Romania and India while continuing to support BAT's newly launched Future Capabilities Centre in India and existing technology hubs in Malaysia and Mexico. The companies said the agreement will focus on AI-enabled innovation, technology capability building and greater operational efficiency. The partnership also aligns with BAT's broader Fit2Win transformation programme, under which the group is expanding the use of external technology and business-services partners to simplify its global operating model.
Aug.13
FDA Authorizes JUUL2, Cites Adult Switching Amid Efforts to Speed PMTA Reviews
FDA Authorizes JUUL2, Cites Adult Switching Amid Efforts to Speed PMTA Reviews
The FDA authorized the JUUL2 device and tobacco- and menthol-flavored pods on Aug. 28, bringing the number of authorized e-cigarette products to 48. The agency highlighted complete switching among adult smokers, with six-week switching rates reaching 28.4%–49.3% for the menthol pod. The decision comes as FDA works to speed PMTA reviews, reduce application backlogs and expand authorized e-cigarette and nicotine-pouch products while maintaining enforcement priorities for unauthorized products.
Regulations
Aug.29