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

Mexico City hands over 50,376 vapes and e-cigarettes for destruction, valued at USD 570,000
Mexico City hands over 50,376 vapes and e-cigarettes for destruction, valued at USD 570,000
Mexico City Head of Government Clara Brugada handed over 50,376 vapes and e-cigarettes in the Zócalo for final destruction. The report puts the value at 10 million pesos (about USD 570,000) and says the goods were seized from a stall and a warehouse in the Historic Center, with one person detained because selling these products is illegal.
Jan.19 by 2FIRSTS.ai
Nicotine Becomes Second-Largest Revenue Source for Couche-Tard in Fiscal 2025
Nicotine Becomes Second-Largest Revenue Source for Couche-Tard in Fiscal 2025
Alimentation Couche-Tard reported that nicotine products accounted for 9% of total revenue in fiscal 2025, making it the company’s second-largest revenue source after fuel, according to its latest Business Strategy Update.
Market
Feb.19
Kansas, U.S.: Attorney General issues alert on China-made “smart vapes” targeting children
Kansas, U.S.: Attorney General issues alert on China-made “smart vapes” targeting children
On Jan. 10, Kansas Attorney General Kris Kobach issued a consumer alert warning Kansans about dangerous vaping products from China marketed as “smart vapes.” The alert says these devices let children use games, social media, Bluetooth, music and more while simultaneously inhaling unregulated materials, and describes them as designed to entice teens and conceal their nature from parents.
Jan.12 by 2FIRSTS.ai
MEPs seek Commission answers over EU trade officials’ contacts with PMI
MEPs seek Commission answers over EU trade officials’ contacts with PMI
POLITICO reports that five members of the European Parliament’s health committee want to invite the European Commission to answer questions about its contacts with Philip Morris International (PMI), following a POLITICO and The Examination investigation into extensive meetings between EU trade officials and tobacco lobbyists.
Jan.15 by 2FIRSTS.ai
Russia dismantles illegal vape liquid plant near Moscow; goods worth about $13 million seized
Russia dismantles illegal vape liquid plant near Moscow; goods worth about $13 million seized
Russian authorities say they have dismantled an illegal vape-liquid production site in the Moscow region, seizing four production lines, large quantities of components and finished goods, and substantial cash. The Interior Ministry estimated the seized products’ value at about 1 billion rubles (≈$13 million) and said the operation ran around the clock, producing up to 75,000 units per shift.
Feb.10 by 2FIRSTS.ai
Before the Boom:  Why Manufacturing Is Becoming the Deciding Factor in U.S. Nicotine Pouches — An Interview with Rena World
Before the Boom: Why Manufacturing Is Becoming the Deciding Factor in U.S. Nicotine Pouches — An Interview with Rena World
As the U.S. nicotine pouch market moves toward regulatory clarity and rapid growth, attention is shifting from demand to execution. In an interview with 2Firsts, U.S.-based manufacturer Rena explains why manufacturing capacity, quality systems, and compliance readiness are becoming decisive factors before the market fully takes off.
Jan.19