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

DOJ Trade Fraud Task Force Tops $1 Billion in Cases, Putting Vape Supply Chains at Risk of Fraud Enforcement
DOJ Trade Fraud Task Force Tops $1 Billion in Cases, Putting Vape Supply Chains at Risk of Fraud Enforcement
According to the U.S. Department of Justice (DOJ), Fox News and other reports, the DOJ’s Trade Fraud Task Force (TFTF) has been linked to more than $1 billion in recoveries, penalties, forfeitures and publicly charged losses in less than one year. The task force focuses on trade fraud issues including country-of-origin fraud, illegal transshipment, false declarations and tariff evasion. While vape products are not the main source of the $1 billion figure, the industry’s reliance on global manufacturing and cross-border supply chains places it within broader U.S. trade enforcement scrutiny. The development suggests that U.S. oversight of cross-border vape products may increasingly extend beyond product authorization into import compliance, supply-chain transparency and corporate accountability.
Jul.23
Germany Seizes 56 Pallets of Illegal Vapes, Probe Estimates €1.8 Million Tax Loss
Germany Seizes 56 Pallets of Illegal Vapes, Probe Estimates €1.8 Million Tax Loss
German authorities have seized dozens of pallets of illegal disposable vapes in a criminal investigation, with the products estimated to have caused at least €1.8 million in tax losses. The case has also raised concerns over cross-border supply chains linked to unauthorized nicotine products entering the European market.
Jul.14
UK Sets Oct. 29 Start for New Vape Retail Rules Covering Age Checks, Giveaways and Discounts
UK Sets Oct. 29 Start for New Vape Retail Rules Covering Age Checks, Giveaways and Discounts
The UK Department of Health and Social Care published new guidance on Aug. 11 outlining the next phase of retail rules under the Tobacco and Vapes Act 2026, which will take effect on Oct. 29, 2026. The measures extend the minimum age of sale of 18 to all vaping and consumer nicotine products and restrict proxy purchasing, promotional giveaways and substantial discounts. Relevant offences in England, Wales and Scotland may carry a £200 fixed penalty notice, while persistent offenders can face temporary sales bans.
Aug.12
Philip Morris Italia Invests €1 Million to Upgrade Retail Network, Supporting 45,000 Tobacco Shops in Smoke-Free Shift
Philip Morris Italia Invests €1 Million to Upgrade Retail Network, Supporting 45,000 Tobacco Shops in Smoke-Free Shift
Philip Morris Italia has launched the Trade Academy program, investing €1 million to provide training and development support for approximately 45,000 tobacco retailers in Italy. The initiative aims to strengthen retailers’ capabilities in heated tobacco products, digital tools and consumer services. The move reflects how nicotine companies are increasingly investing in retail networks and frontline capabilities as new nicotine products become more important in the market.
Jul.28
Product | VEEV One Plus Goes Official as PMI Strengthens Its Closed-Pod Vaping Portfolio
Product | VEEV One Plus Goes Official as PMI Strengthens Its Closed-Pod Vaping Portfolio
Philip Morris International (PMI) has officially introduced the VEEV One Plus, the next-generation device in its closed-pod vaping lineup. The product is now featured on the official VEEV website in Portugal, bringing hardware upgrades including a new dual-pod storage system, a larger battery, and an updated device design while maintaining compatibility with existing VEEV One pods.
Jul.02
Nicotine Pouches Gain Ground in U.S. Convenience Stores as Vape Unit Sales Fall 14%
Nicotine Pouches Gain Ground in U.S. Convenience Stores as Vape Unit Sales Fall 14%
According to convenience retail publication CStore Decisions, U.S. convenience store tobacco categories are undergoing a structural shift. Based on Circana OmniMarket Total U.S. Convenience data for the 52 weeks ending June 14, 2026, cigarettes remained the largest category with $50.8 billion in sales, but unit sales declined 5.3%. Electronic smoking devices and vaping products also declined, while modern oral nicotine products continued to grow, with nicotine pouch sales rising 29% in dollars and 17% in units. Retailers said changing consumer preferences are reshaping tobacco product assortments at convenience stores.
Regulations
Aug.07