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

Scandinavian Tobacco Group releases 2025 results: tariffs and weaker demand weigh on performance, revenue about $1.4 billion
Scandinavian Tobacco Group releases 2025 results: tariffs and weaker demand weigh on performance, revenue about $1.4 billion
Scandinavian Tobacco Group (STG) reported its 2025 results: revenue was 9.036 billion Danish kroner (about $1.407 billion); EBITDA before special items was 1.791 billion Danish kroner (about $278 million); and free cash flow before acquisitions was 595 million Danish kroner (about $92.7 million). Multiple metrics declined year over year, and the company did not meet its Q3-updated guidance for revenue and free cash flow.
Mar.05 by 2FIRSTS.ai
FDA Opens Public Comment Period on Draft Guidance for Flavored E-Cigarette Applications
FDA Opens Public Comment Period on Draft Guidance for Flavored E-Cigarette Applications
The U.S. Food and Drug Administration’s Center for Tobacco Products announced an open public comment period for a draft guidance titled Flavored Electronic Nicotine Delivery Systems (ENDS) Premarket Applications – Considerations Related to Youth Risk.
Apr.09 by 2FIRSTS.ai
Thailand’s DDC Files Complaint Over Online Sales of Nicotine Pouches
Thailand’s DDC Files Complaint Over Online Sales of Nicotine Pouches
Thailand’s Department of Disease Control has lodged a complaint over the alleged online sale of nicotine pouches. The department said its monitoring found the products were being advertised and sold through electronic media, and a further inquiry later identified a physical shop linked to a store in Pathum Thani province.
Mar.23 by 2FIRSTS.ai
Product | Pixx Nicotine Toothpicks Listed on UK Retail Website, Said to Be Unaffected by Upcoming Vape Tax
Product | Pixx Nicotine Toothpicks Listed on UK Retail Website, Said to Be Unaffected by Upcoming Vape Tax
2Firsts has noted that a nicotine toothpick product named Pixx has appeared on a UK retailer website. The product page describes it as a smoke-free nicotine product, and the packaging image shows “UK MADE.” A nicotine-industry professional wrote on LinkedIn that the UK is set to introduce vape tax changes that may increase pressure on the retail side, and said Pixx is expected not to be included in the upcoming vape tax.
Mar.05 by 2FIRSTS.ai
IMF Article Sets Out Three Principles: Cover All Harmful Products, Match Tax Rates to Harm, Improve Cross-Border Coordination
IMF Article Sets Out Three Principles: Cover All Harmful Products, Match Tax Rates to Harm, Improve Cross-Border Coordination
A March 2026 article in Finance & Development, “Taxing Harmful Habits,” argues that taxes on harmful products such as tobacco, alcohol and sugary drinks should better reflect the health harm they cause. The authors propose three principles: capture all harmful products, align tax rates with health harm, and strengthen cross-border coordination to reduce evasion and smuggling.
Mar.24 by 2FIRSTS.ai
Swedish Politicians Ask European Commission to Clarify Legality of France’s Nicotine Pouch Ban
Swedish Politicians Ask European Commission to Clarify Legality of France’s Nicotine Pouch Ban
France’s ban on oral nicotine pouches has triggered an immediate response in Sweden. Swedish Minister for Foreign Trade Benjamin Dousa said Sweden had mobilized strongly against the ban and argued that it constitutes a clear obstacle to the free movement of goods within the EU single market. Swedish officials say the measure affects a strategically important domestic industry and conflicts with Sweden’s harm-reduction approach to public health.
Apr.14 by 2FIRSTS.ai