Industry Groups Push Back on Plain Packaging
More than 20 industry organizations signed a joint statement against Indonesia’s plans to require plain packaging for tobacco and vaping products, reports The Jakarta Post. The signatories included groups representing manufacturers, tobacco and clove farmers, labor unions, traders/retailers, creative industries, broadcasters and advertisers.
Franky Sibarani, vice chairman of the Indonesian employers’ association Apindo, noted that, given the significance of the tobacco business in Indonesia, the regulatory pressures were likely be felt in other sectors as well. The tobacco industry, he pointed out, supports millions of jobs, including farmers, workers, traders and retailers, along with professionals working in the creative industry.
“Policymakers should be cautious in issuing regulations that could threaten prolonged contractions,” said Sibarani.
Henry Najoan, chairman of the Indonesian kretek cigarette manufacturers association Gappri, emphasized that the tobacco industry is not just a business but a significant economic and cultural chain.
“The proposal for plain packaging […] will have serious impacts, as it exacerbates already excessive policies and could lead to a contraction in state revenue and employment,” he said. “Therefore, we firmly reject this regulation.”
Benny Wachjudi, chairman of the Indonesian white cigarette producers association Gaprindo, highlighted the tobacco industry’s contributions to the national economy. The industry, he said, accounts for up to 10 percent, or more than IDR200 trillion ($12.99 billion), of Indonesia’s annual excise duty collections. Plain packaging, Wachjudi warned, would boost the illicit cigarette trade.
Kusnasi Mudi, secretary-general of the National Tobacco Farmers Association, noted that tobacco cultivation alone supports 2.5 million livelihoods in Indonesia. “Tobacco is one of the national strategic commodities, but our existence is continually suppressed,” he said. “We request government protection for the 2.5 million farmers who are also struggling for their livelihoods and facing various other issues.”
Tutum Rahanta, chairman of the advisory council of the Indonesian Retailers and Shopping Center Tenants Association, said that the plain packaging proposals are impractical for all parties involved. “This regulation seriously undermines the tobacco industry at a time when the sector, from upstream to downstream, has adhered to previous regulations,” he said. “The government should focus on combating illegal cigarettes rather than interfering with legal cigarettes that comply with the law.”
Fabianus Bernadi, chairman of the Indonesian outdoor media association AMLI, said the proposed legislation would significantly impact his members’ economic viability. A recent survey suggested that in some regions, the organization’s companies derived up to 79 percent of their business from tobacco products.
