Reasons Kemenperin Urges Kemenkes to Cancel the Proposed Standardized Cigarette Packaging Policy

The Ministry of Industry (Kemenperin) has submitted its input on the Draft Regulation of the Minister of Health (Rancangan Peraturan Menteri Kesehatan – “RPMK”) on the Inclusion of Health Warnings and Product Information for Tobacco Products and Electronic Cigarettes. Merrijanti Punguan Pintaria, Director of the Industry of Beverages, Tobacco Products, and Refreshing Substances at the Ministry of Industry, stated that in its letter the Ministry expressed its objection to the proposed cigarette packaging standardization under the RPMK.

In its recommendation letter, the Ministry of Industry emphasized that all strategic policies must be aligned to support the national economic growth target. “Therefore, the RPMK should be focused on regulating health warnings in accordance with the mandate of Regulation of the Government No 28 of 2024 (“PP 28/2024”),” she told Hukumonline. The PP is an implementing regulation of Law No. 17 of 2023 on Health (“Law 17/2023”), which also governs the control of tobacco products and electronic cigarettes.

Kemenperin has also requested that the Kemenkes remove the provisions on packaging standardization, which it considers to exceed the mandate of the applicable regulations, and to extend the transition period in order to support effective implementation of the regulation.

Merry expressed the view that the proposed cigarette packaging standardization would have a negative impact on the domestic tobacco industry. “Standardizing the shape, size, and color of packaging would potentially increase packaging counterfeiting, which in turn could encourage the circulation of illegal cigarettes,” she stated.

Merry explained that an increase in the circulation of illegal cigarettes would erode the market for legal cigarettes. This would consequently lead to a decline in sales, a reduction in production, workforce efficiency measures, and potential layoffs within the legal tobacco industry. She added that the circulation of illegal cigarettes also has an impact on state revenue and employment absorption.

To follow up on these inputs, Merry stated that in the near future the Ministry of Health will conduct harmonization with other relevant ministries and agencies, including the Ministry of Industry, to further discuss the RPMK.