Regulations Impact on Tobacco and E-cigarette Industry in Indonesia

According to Suara's report on August 11th, the traditional tobacco industry and alternative tobacco products industry in Indonesia are both feeling uneasy due to the enactment of Government Regulation No. 28 of 2024 concerning the implementation of Health Law No. 17 of 2023.

The relevant associations in the alternative tobacco products industry have also expressed opposition to this. It is reported that the regulation prohibits the sale of tobacco products and e-cigarettes within 200 meters of educational institutions or children's playgrounds, and restricts advertising in entrance and exit areas.

Garindra Kartasasmita, Secretary General of the Indonesian Personal E-cigarette Association (APVI), expressed regret over the regulation that bans the sale of e-cigarettes within 200 meters of educational institutions and children's playgrounds. He pointed out that this regulation disregards the livelihoods of small vendors.

He said that such regulations would be difficult to implement in cities with numerous educational institutions and amusement parks located close to each other. What's more, many e-cigarette shop owners have already signed leases for up to three years before these regulations were put in place.

We understand the government's intention to protect minors and support it. However, we cannot sacrifice small vendors for this. If given the opportunity, we can offer many suggestions.

Creating another problem while solving one is not acceptable. Any regulations need to be carefully formulated based on listening to the opinions of actual practitioners.

Fachmi Kurnia, Chairman of the Indonesian E-Cigarette Retail Association (ARVINDO), expressed regret over the regulation. He pointed out that the ban on selling e-cigarettes within a 200-meter radius has had a significant impact on small businesses.

We feel very damaged, not only as an e-cigarette retailer, but also for those small shops that rely on tobacco product sales as their main source of income. Many of these shops existed before the establishment of schools and playgrounds.

As a industry stakeholder, Fahmi suggests that the government should balance public health protection and support for small and micro enterprises when implementing policies to prevent harm to either party.

Fahmi added that although industry associations have always supported government policies to reduce smoking rates, the Health Act has narrowed the market space for alternative tobacco products by treating them equally to traditional tobacco. The government should recognize that alternative tobacco products are one solution to reducing the risks of smoking-related diseases.

He said that if the government wants to significantly reduce the number of smokers and decrease risks, they should more actively promote alternative tobacco products based on scientific research.

Now the government needs to adopt new methods to provide adult smokers with lower-risk alternatives.