Potential Impact of Standardized Tobacco Packaging on Indonesia Industry

Dec.24.2024
Potential Impact of Standardized Tobacco Packaging on Indonesia Industry
Indonesian Industry Ministry warns standardized tobacco packaging may worsen illegal tobacco circulation, affecting legal industry and revenue.

According to Okezone's report on December 23, the Indonesian Ministry of Industry revealed that standardizing tobacco product packaging could potentially exacerbate the circulation of illegal tobacco. Due to the lack of distinctiveness in uniform packaging, the market share of legal products may gradually be eroded, leading to a domino effect on the entire industry.


The Director of the Ministry of Industry for the Beverage, Tobacco, and Stimulant Industry, Merrijantij Punguan Pintaria, stated that ...


Standardizing tobacco packaging can make it easier for illegal cigarettes to circulate, as the packaging looks the same and it is more difficult to distinguish between legal and illegal cigarettes. This could further weaken the performance of the legal tobacco industry. If not controlled, the circulation of illegal cigarettes could undermine company revenue, job creation, and raw material consumption.


The Indonesian Ministry of Health is currently drafting the "Regulation of the Minister of Health on the Safety of Tobacco Products and E-cigarettes" required by Government Regulation No. 28 of 2024. Standardized packaging is included as part of the draft "RPMK Tobacco Regulation".


Mai Li also pointed out that illegal tobacco not only threatens the survival of the industry but could also lead to a reduction in national tax revenue.


Additionally, tobacco tax revenue has been below target in the past year. In 2023, tobacco tax revenue was 213 trillion Indonesian rupiah (131 billion dollars), falling short of the target of 227.21 trillion rupiah (140 billion dollars) set in the 2023 fiscal budget.


The Director of the Communication and Community Services Department of the Ministry of Health, Siti Nadia Tarmizi, responded that the Ministry of Health is internally coordinating the implementation of the "Health Government Regulations," including the still pending "RPMK Tobacco Regulations.


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

New Nicotine Products Added to Tax List in Delaware Budget Proposal
New Nicotine Products Added to Tax List in Delaware Budget Proposal
Delaware Governor Matt Meyer’s proposed FY2027 budget would significantly raise cigarette and nicotine product taxes to help close a $500 million budget gap and generate new revenue. The cigarette tax would rise from $2.10 to $3.60 per pack, with increases on moist snuff, e-liquids and other tobacco products. Supporters say the move is justified, while small businesses warn of potential sales losses.
Feb.17
Special Report | Belarus Rejects Vape Ban, Opts for Tighter Market Controls
Special Report | Belarus Rejects Vape Ban, Opts for Tighter Market Controls
After weeks of debate over a potential blanket prohibition, Belarus has decided against banning electronic cigarettes, choosing instead to tighten control over wholesale, imports and licensing. President Alexander Lukashenko warned that an outright ban could drive the market underground and undermine state revenues, as officials move to curb widespread illicit trade while keeping retail sales largely intact.
Mar.04
Myanmar announces ban on e-cigarettes, covering imports/exports, sales, possession and use
Myanmar announces ban on e-cigarettes, covering imports/exports, sales, possession and use
Myanmar’s Ministry of Health said it has received cabinet authorization to enforce an e-cigarette ban under the Essential Supplies and Services Law, listing prohibited acts including the import, export, sale, possession, storage, carrying, distribution and use of vaping products.
Feb.26 by 2FIRSTS.ai
UK Vape Waste Falls 23% From 2024, but Recycling Group Says Fire Risks Remain High
UK Vape Waste Falls 23% From 2024, but Recycling Group Says Fire Risks Remain High
New research from UK recycling campaign group Material Focus says more than 6.3 million vapes and pods are still thrown away each week in the UK. The figure is down 23% from 8.2 million in 2024, which the group said suggests the June 2025 single-use vape ban has helped reduce waste, but it warned that the current level still represents a major waste of valuable materials and a significant fire risk.
Mar.27 by 2FIRSTS.ai
Manchester’s Cheetham Hill Hosts 54 Vape Shops Across Two Streets
Manchester’s Cheetham Hill Hosts 54 Vape Shops Across Two Streets
Cheetham Hill in Greater Manchester has become one of the UK’s most concentrated vape retail clusters, with 54 e-cigarette shops operating along two adjacent streets following a police crackdown on counterfeit goods in the area.
Feb.21
Proposed vaping duty in Jersey: £467,000 forecast for 2026 as it takes effect in the second half of the year
Proposed vaping duty in Jersey: £467,000 forecast for 2026 as it takes effect in the second half of the year
Jersey is proposing a vaping duty. The Treasury Minister said the duty is forecast to raise £467,000 in 2026 because it will take effect in the second half of the year, and £955,000 per year from 2027 to 2029. Implementation is estimated to cost around £400,000 over four years, with an initial cost of £145,000 in 2026. The policy is described as aiming to reduce nicotine consumption and improve public health, while avoiding a shift to smoking.
Feb.26 by 2FIRSTS.ai