JAKARTA — Indonesia’s tobacco industry is mounting strong opposition to a set of government regulations that would impose sweeping new restrictions on cigarette manufacturing and marketing, with industry leaders warning the changes could devastate a sector worth $40 billion.
The proposed rules, expected to be finalized by July 26, would require plain packaging for both traditional cigarettes and e-cigarettes — a move aimed at reducing the product’s appeal to younger consumers. The regulations would also cap tar content at 10 milligrams per cigarette and nicotine at 1 milligram, while prohibiting the use of additives.
Henry Najoan, chairman of the Federation of Indonesian Cigarette Manufacturers, spoke at a joint press conference alongside officials from tobacco supply organizations, delivering a stark warning: “If these rules are implemented, the industry will collapse.”
Workers and tobacco farmers who attended the conference went further, threatening to take to the streets in protest unless the government abandons the proposed plan entirely.
Neither the health ministry nor the coordinating ministry of human development and culture responded to requests for comment.
Indonesia currently has some of the most relaxed smoking regulations in the world, contributing to a smoking rate of roughly 70% among men — one of the highest anywhere on the globe.
Edi Sutopo, chair of the Indonesian Tobacco Community Alliance, acknowledged that the new standards may align with international norms, but argued that Indonesia’s market is unique. Clove cigarettes — known locally as kretek — make up about 90% of all cigarette sales in the country and contain significantly higher levels of nicotine and tar than the proposed limits would allow.
The Alliance also highlighted the industry’s outsized role in the Indonesian economy. According to the group, tobacco-related activities generate 710 trillion rupiah (approximately $39.6 billion) across the supply chain, support 6 million workers and farmers, and contribute around 300 trillion rupiah in excise duties and taxes to the government each year.
Sutopo noted that the vast majority of brands currently on the market would be unable to meet the proposed nicotine and tar ceilings. He also pointed out that certain additives are standard practice in the production of both kretek and white cigarettes — including cooling agents and sugar used to preserve moisture in clove cigarettes.
Najoan added that the plain packaging requirement could have an unintended consequence: driving consumers toward illegal cigarette products.
Among Indonesia’s largest cigarette producers are Hanjaya Mandala Sampoerna, which is controlled by Philip Morris International, as well as Gudang Garam, Djarum Group, and Bentoel, which is part of British American Tobacco.
