Tobacco Product Restrictions Potentially Cause Mass Layoffs, Indonesian Workers Union Claims
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12 September 2024 11:48 WIB
TEMPO.CO, Jakarta - The Head of the Federation of Cigarette, Tobacco, Food, and Beverage Workers – All-Indonesian Workers Union (FSP RTMM – SPSI), Sudarto AS, said the Government Regulation No. 28 of 2024 on Health and the Ministerial Regulation on Tobacco Products and Electronic Cigarette Bill could potentially cause massive layoffs.
According to Sudarto, the tobacco products industry absorbs over 6 million workers, and the new regulation could affect them. “Around 6 million workers depend their lives on the tobacco products industry. Now, imagine if each of them has 2 kids, that’s 24 million who depend their livelihood in this sector,” he said on Wednesday, September 11, 2024, in a press conference.
Sudarto believes that even if the regulation targets the distribution of tobacco products, it would still impact workers and tobacco farmers. “The provisions in Government Regulation on Health targets the downstream, but if sale slows down, the industry and workers will be affected too,” he added.
In line with Sudarto, the Deputy Head of the Indonesian Employers Association (Apindo), Franky Sibarani, also expressed his objection to the tobacco regulation. According to him, the Government Regulation on Health and its derivatives could have a bigger impact than during the COVID-19 pandemic.
“Our incomes did slow down during the COVID-19 pandemic, but the companies could still overcome the situation,” he said. “There were layoffs, but this time (the government) will halt the industry.”
Apindo and 20 other cross-sector associations rejected the potentially destructive provisions in the Government Regulation and the draft law of the Health Minister Regulation.
The provisions relate to the standardization of plain packaging that eliminates the brand identity of tobacco products, the implementation of tar and nicotine limits, and the implementation of a zoning ban on the sale of tobacco products within a certain radius.
In addition, they also encourage direct participation from parties who are potentially affected by the regulations restricting tobacco products regulation. "We are not anti-regulation, but they must not interfere with job security and income security as part of protected worker’s rights," concluded Sudarto.
OYUK IVANI S
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