The Indonesian government has announced that the sale of second-hand loose cigarettes will be banned by 2023. Presidential Regulation No. 25 of 2022 has outlined the drafting of government regulations for implementation in 2023.
However, this plan faced significant resistance from both retailers who buy from wholesalers and smokers.
In addition, it also calls for the government to supervise whether the ban is actually implemented. For example, Tulus Abadi, Chairman of the Executive Committee of the Indonesian Consumer Foundation (YLKI), explained the situation of the ban on the sale of hand-rolled cigarettes.
He said, "This is a policy that should be appreciated because it is one of the effective control methods for reducing the smoking rate in Indonesia, particularly among impoverished families, children, and adolescents.
He revealed that the ban on ketone drugs sales is also effective in boosting the revenue from cigarette consumption tax. So far, increasing the consumption tax has not effectively reduced the prevalence and consumption of cigarettes, as cigarettes are still predominantly sold based on ketones and marketed like candy, so prices are affordable.
The ban on the sale of handheld cigarettes also aligns with the spirit of Law No. 39/2007 on consumption tax. The Consumption Tax Law states that products that cause addiction and have negative effects on users and the environment are subject to sales restrictions. However, it is essential to monitor the actual implementation and sanctions for violators. The speaker warned against letting the ban on the sale of Kretek cigarettes become toothless.
According to the Indonesian Market Traders Association (APPSI), a sales ban could erode the income of vendors, given the weakened purchasing power of the public.
According to Mujiburrohman, Secretary General of APPSI, it is predicted that revenue will decrease by more than 30%. He explained that this decline is due to cigarette sales being the biggest contributor to stall income after food sales.
Buying and selling cigarettes requires a significant amount of capital, but the profit margins are generally low. According to a source, booths or stores that sell cigarettes by the pack may only see revenue in the range of 5-10% of the sales price, while those who typically sell cigarettes wholesale may only receive a profit margin of 1-3%.
The Association of Indonesian Street Vendors (APKLI) is preparing to send an open letter to President Joko Widodo.
APKLI President Ali Mahsun explained that cigarette retail has always been one of the main sources of income for street vendors. Therefore, the argument for this ban will significantly reduce the income of street vendors.
Disclaimer
This article is provided solely for professional research, industry discussion, and informational purposes. Any references to brands, companies, products, technologies, or policies are made for factual reporting and analytical purposes only, and do not constitute endorsement, recommendation, promotion, or advertising by 2Firsts.
Nicotine-containing products, including but not limited to cigarettes, e-cigarettes, heated tobacco products, and nicotine pouches, carry significant health risks. Readers are responsible for complying with all applicable laws and regulations in their respective jurisdictions, including age restrictions and access limitations.
The information contained in this article should not be regarded as investment, legal, medical, regulatory, or commercial advice. While 2Firsts strives to ensure the accuracy and reliability of its content, it does not assume liability for any direct or indirect loss arising from errors, omissions, inaccuracies, or reliance on the information contained herein.
This article is not intended for individuals below the legal age for accessing tobacco or nicotine-related information in their jurisdiction.
Copyright Notice
This article is either original content produced by 2Firsts or content reproduced, translated, summarized, or adapted from third-party sources with attribution where applicable. The intellectual property rights of the original content remain with 2Firsts or the respective original rights holders.
No individual or organization may copy, reproduce, distribute, republish, modify, translate, or otherwise use this content without prior authorization. Any unauthorized use may result in legal action.
For copyright-related inquiries, corrections, or removal requests, please contact: info@2firsts.com.
AI-Assisted Translation and Editing Notice
Portions of this article may have been translated, edited, or reviewed with the assistance of artificial intelligence tools to improve efficiency and readability. Due to the limitations of AI-assisted translation and editing, discrepancies, omissions, or inaccuracies may exist when compared with the original source.
Where applicable, readers are advised to refer to the original source for the most complete and accurate information. If you identify any errors or believe that any content infringes upon your rights, please contact us at info@2firsts.com, and we will review and address the matter promptly.
