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

Canadian Border Officers Seize Contraband Worth CAD 4.5 Million at Point Edward Crossing
Canadian Border Officers Seize Contraband Worth CAD 4.5 Million at Point Edward Crossing
The Canada Border Services Agency said border officers at the Point Edward port of entry in Sarnia, Ontario, seized more than CAD 4.5 million worth of illegal tobacco and nicotine vapes over a seven-day period. The agency said the contraband was entering Canada from the United States and described the seizure as part of ongoing efforts to prevent illegal products from entering the country and disrupt organized crime.
Mar.26 by 2FIRSTS.ai
KT&G Launches “Miix Cigar Collection” for lil Hybrid at Convenience Stores Nationwide
KT&G Launches “Miix Cigar Collection” for lil Hybrid at Convenience Stores Nationwide
KT&G said on April 15 that it will launch “Miix Cigar Collection,” a dedicated stick for its lil Hybrid heated tobacco product, at convenience stores nationwide in South Korea. The company said the product is the first in the Miix series to apply a “Balance Filter” with internal space in the filter and contains 18% cigar leaf to deliver cigar flavor. With the new launch, the Miix lineup for lil Hybrid will expand to 16 products.
Apr.15 by 2FIRSTS.ai
Texas college data show rapid shifts in top vaping brands, with Geek Bar/Vape surging by 2025
Texas college data show rapid shifts in top vaping brands, with Geek Bar/Vape surging by 2025
A short communication in Drug and Alcohol Dependence examined changes in the most commonly used nicotine vaping brands among Texas college students from 2023 to 2025. The study analyzed 6,049 students aged 18–25 who reported past-30-day nicotine vaping across three repeated cross-sectional spring surveys. The report found that use of Esco Bar, Elf Bar, JUUL, and Puff Bar declined from 2023 to 2025, while Geek Bar/Vape increased.
Feb.27 by 2FIRSTS.ai
Illegal Trade in Tobacco and E-Cigarettes Continues to Rise in Germany, BVTE and BDZ Call for Enforceable Regulation
Illegal Trade in Tobacco and E-Cigarettes Continues to Rise in Germany, BVTE and BDZ Call for Enforceable Regulation
BVTE and BDZ said at a joint press conference in Berlin on March 10 that illegal trade in tobacco products, e-cigarettes and other nicotine products continues to grow in Germany, posing challenges to the rule of law, youth protection, consumer protection and state fiscal authority. The groups said there is still no reliable overall statistic for the illegal trade in tobacco products, e-cigarettes, nicotine pouches and oral nicotine products.
Mar.12 by 2FIRSTS.ai
Ukrainian Prosecutors and Economic Security Bureau Dismantle Illegal Vape Liquid Network Worth About UAH 30 Million
Ukrainian Prosecutors and Economic Security Bureau Dismantle Illegal Vape Liquid Network Worth About UAH 30 Million
Ukraine’s Office of the Prosecutor General and the Bureau of Economic Security said they uncovered an illegal production and sales scheme for e-cigarette liquids that had been operating in Ukraine since 2023.
Apr.14 by 2FIRSTS.ai
FDA and IKE Tech Hold Formal Listening Session on Youth Access and Illicit ENDS Products
FDA and IKE Tech Hold Formal Listening Session on Youth Access and Illicit ENDS Products
U.S. Food and Drug Administration’s Center for Tobacco Products held a formal listening session with IKE Tech LLC to discuss youth prevention at the point of use for ENDS products, the circulation of illicit products in the supply chain, and the regulatory treatment of software in tobacco products.
Apr.10 by 2FIRSTS.ai