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

China Discloses First Criminal Case Over Counterfeit Vapes Disguised as “Medical Nebulizers” and “Zero-Nicotine” Products
China Discloses First Criminal Case Over Counterfeit Vapes Disguised as “Medical Nebulizers” and “Zero-Nicotine” Products
Chinese authorities have disclosed the country’s first reported criminal case involving counterfeit vapes marketed as “medical nebulizers” and “zero-nicotine” products. Authorities determined that the products involved were counterfeit vapes and pursued criminal charges for producing and selling counterfeit goods. According to the report, the case resulted in the seizure of 347,000 counterfeit vape pods and 53,700 vape devices, with physical goods valued at 22.13 million yuan.
Aug.04
Australia Tobacco Tax Debate Spreads Within Labor as NSW Premier Minns Reaffirms Support for a Cut
Australia Tobacco Tax Debate Spreads Within Labor as NSW Premier Minns Reaffirms Support for a Cut
Australia’s tobacco excise debate is increasingly exposing differences within the governing Labor Party. New South Wales Labor Premier Chris Minns reaffirmed on September 8 that he supports reducing tobacco excise, arguing that current tax settings are pushing consumers toward cheaper black-market cigarettes. Federal Health Minister Mark Butler continues to oppose an excise cut, while Treasurer Jim Chalmers and Assistant Treasurer Daniel Mulino have recently stopped short of ruling out future changes. The divergence follows the opposition Coalition’s proposal to cut tobacco excise by 80%.
Sep.08
China Tobacco Plans CNY 60 Billion Investment in ICBC, Agricultural Bank as Strategic Ties Extend Beyond Equity
China Tobacco Plans CNY 60 Billion Investment in ICBC, Agricultural Bank as Strategic Ties Extend Beyond Equity
China National Tobacco Corporation and several subsidiaries plan to invest a combined CNY 60 billion ($8.7 billion) in share placements by Industrial and Commercial Bank of China and Agricultural Bank of China as strategic investors. The agreements extend beyond equity investment to corporate governance, banking services and supply-chain finance. The filings also disclose 2025 data on China Tobacco’s tax and profit contributions and industry scale.
Sep.07
Australia’s TGA Places Nicotine Pouches Under Therapeutic Goods Rules From July 24, Blocking Imports of Unapproved Products
Australia’s TGA Places Nicotine Pouches Under Therapeutic Goods Rules From July 24, Blocking Imports of Unapproved Products
Australia is strengthening controls on nicotine pouches under its existing therapeutic goods regulatory framework. According to the Therapeutic Goods Administration (TGA), nicotine pouch products must meet regulatory requirements, and unapproved products cannot be legally imported. The move follows Australia’s broader approach of maintaining strict oversight of nicotine products, including nicotine-containing vapes. As nicotine pouches expand globally, Australia’s regulatory approach highlights growing differences in how countries manage emerging smoke-free nicotine products.
Regulations
Jul.27
JTI’s Nordic Spirit Signs Co-op Live Partnership Ahead of New UK Nicotine Sponsorship Restrictions
JTI’s Nordic Spirit Signs Co-op Live Partnership Ahead of New UK Nicotine Sponsorship Restrictions
JTI nicotine pouch brand Nordic Spirit has entered a long-term partnership with Manchester’s Co-op Live, becoming the venue’s Official Nicotine Pouch Partner. The 23,500-capacity venue is the UK’s largest indoor live entertainment arena. Nordic Spirit will run in-venue activations for existing adult nicotine consumers and sell products at selected arena bars. The agreement was entered into before the relevant UK sponsorship restrictions were introduced, while the government intends to implement a comprehensive ban on advertising and sponsorship of vaping and nicotine products from June 1, 2027.
Sep.07
China Tobacco Hubei explores staged nicotine pouch delivery, using dynamic membranes to slow early release and gradient particles to sustain later delivery
China Tobacco Hubei explores staged nicotine pouch delivery, using dynamic membranes to slow early release and gradient particles to sustain later delivery
China Tobacco Hubei Industrial Co., Ltd. disclosed several oral nicotine-related patent applications in August 2026, including two that approach staged nicotine release from different directions. One uses a high-viscosity membrane that forms inside the pouch after contact with saliva to slow rapid early release, while the other uses gradient particles with a faster-disintegrating outer layer and a slower core to create a fast-to-sustained release profile. Together, the filings explore how nicotine pouches could balance initial delivery with release later in use.
Sep.03