Indonesian Government Issues New Regulations Impacting Tobacco Industry in 2024

Sep.04.2024
Indonesian Government Issues New Regulations Impacting Tobacco Industry in 2024
Indonesian Government Issues Regulation on Tobacco Industry, Faces Criticism Over Potential Impact on Economy and Employment.

According to a report by Detik News on September 4th, the Indonesian government has issued Government Regulation No. 28 of 2024 as a detailed explanation of the implementation of Regulation No. 17 of 2023 on health law.


Member of the Indonesian House of Representatives (DPR) fourth committee, Daniel Johan, has warned that the implementation of the new regulations may have a significant impact on the general public.


Daniel stated in his declaration on Tuesday (the 3rd) that the new regulations may lead to massive layoffs and have a significant impact on tobacco farmers and small and medium-sized enterprises (UMKM). He emphasized that government policies should protect the common people and also protect the industry, as if the new regulations cause factories to close, a large number of layoffs will increase, leading to more serious unemployment issues.


In addition, Regulation 435 specifies that individuals who produce or import tobacco and e-cigarette products must adhere to standard packaging design and text requirements. Daniel believes that this regulation could lead to a decrease in demand for raw materials.


He further pointed out that the tobacco industry involves many workers, and once factories close, many people will lose their jobs. He called for finding a "win-win" solution to control tobacco in order to protect public health, while also ensuring the continued economic development of industries dependent on it.


Daniel pointed out that Article 28 may trigger new social conflicts because the regulatory measures during its implementation may contain "trap clauses," which are particularly detrimental to the tobacco industry, especially to struggling tobacco farmers.


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