Industry Ministry Frets Label Changes May Beset Tobacco Industry

TEMPO.CO, Jakarta - The Industry Ministry’s head of beverages, tobacco, and refreshments sub-directorate, Mogadishu Djati Ertanto, conveyed his worry over the revision of Government Regulation (PP) No. 109/2012 that possibly beset the tobacco industry. 

The regulation manages the control of materials containing addictive substances in tobacco products for health. Its revision is related to issues on the cigarette brand limitations up to the plain packaging as recently applied by several countries.

“This will affect the national industry of tobacco products. [We] must observe the impact. Do not let it beset the industry,” said Mogadishu in Milenium Hotel, Jakarta, Wednesday, Oct. 9.

He mentioned that the industry will be affected by the increase in cigarette excise tax and retail price in 2020. While in fact, the national production of tobacco is gradually declining.

In 2015, the production amounted to 358 cigarettes and dropped to 332 billion in 2018.  “[The drop is] above 10 billion cigarettes; that is quite a significant drop,” he remarked.

At present, the cigarette manufacturing industry contributed six percent to the Gross Domestic Products (GDP). The industry also provided an Rp150 trillion tax in 2018 or 9 percent of State Budget. Not to mention, the landscape of the industry in Indonesia.

Previously, Health Ministry secretary-general Oscar Primadi declared that the revision of PP 109/2012 was initially about the plan to enlarge the graphic health warning label on cigarette packs from 40 percent to 90 percent. However, ministries and institutions during the discussion recommended adding more materials related to women's and children's protection as well as the effectiveness of the surveillance and electronic cigarettes.

CAESAR AKBAR | FAJAR PEBRIANTO