Tobacco industry opposes plain packaging in Indonesia

The Indonesian government has adopted a regulatory text that will come into effect on July 26, 2024, regarding tobacco products. This text clarifies the provisions of Health Law No. 17 of 2023, relating to tobacco and e-cigarettes in Indonesia. The new system includes restrictions on advertising and sales. Another text in preparation envisages the introduction of plain packaging for tobacco products and e-cigarettes; it is already generating strong opposition among tobacco industry players.[1].

Tobacco consumption still very high and limited application of current regulations

Indonesia is one of the countries where tobacco consumption remains among the highest in the world. According to the 2021 Global Adult Tobacco Survey (GATS), nearly one-third of Indonesian adults are active smokers, with a particularly high percentage among men (65.5 %)[2]Despite these alarming figures, the regulations are poorly enforced. The lack of compliance monitoring by public authorities in Indonesia limits the impact of these measures, particularly in terms of protecting non-smokers.[3].

Tightened restrictions

In this context, the new restrictions adopted aim to protect the entire population, whether smokers or non-smokers, while reducing tobacco consumption. The current text imposes restrictions on outdoor advertising and the promotion of tobacco products on social networks. It also prohibits the sale of tobacco near schools and places frequented by children as well as the sale of individual cigarettes, except for cigars and electronic cigarettes.[4]Another regulatory text in preparation proposes the introduction of plain packaging for tobacco products and electronic cigarettes. This proposal, still under discussion, is arousing strong opposition from the tobacco industry.

The weight of the tobacco lobby and its opposition to the measures

The tobacco lobby in Indonesia wields considerable influence over public policy. The industry, along with other economic actors, generally argues that tobacco farming supports the economy. Tobacco farmers and unions, such as Kusnasi Mudi, secretary general of the National Tobacco Farmers Association, have expressed concern about the impact of the new regulations on farmers. They believe that additional restrictions could jeopardize the livelihoods of millions of families.

However, the economic argument is not proven. The tobacco industry is certainly present in the Indonesian economy. However, the short-term economic benefits are overshadowed by the considerable costs that tobacco imposes on the country. This is particularly true for the already strained health system: the costs of treating tobacco-related diseases are a growing burden on the state. Furthermore, studies show that tobacco farming is less economically viable for farmers in the long term than other crops. It exposes farmers to significant health and financial risks. For example, a study conducted in Indonesia and the Philippines found that many small tobacco farmers overestimate their profits because they do not take into account the high cost of inputs (such as seeds, pesticides and fertilizers) and family labor. This often leads them into a cycle of debt, particularly in contract systems with tobacco companies, where producers have little bargaining power and are forced to sell their produce at very low prices.[5].

The benefits of plain packaging and Indonesia's efforts to align with international regulations

Despite opposition, plain packaging advocates point to its many benefits, proven by scientific literature and the experience of other countries, including Australia, which introduced the measure in 2012. According to studies and country experience, plain packaging reduces the attractiveness of tobacco products, particularly among young people, by removing the marketing impact of logos, colours and brands. In addition to its deterrent effect on initiation, it makes health warnings more visible and prevents tobacco companies from trying to circumvent strategies that suggest that one product is less dangerous than another.[6].

By adopting these new texts and potentially the plain packaging, Indonesia seeks to align its regulations with international standards. The implementation of such measures would constitute a step forward in the fight against tobacco for the country.

©Tobacco Free Generation

RK

[1] https://www.thejakartapost.com/front-row/2024/09/13/tobacco-industry-stakeholders-oppose-plain-packaging-in-health-ministry-reg-no-282024.html (accessed 09/17/2024)

[2] World Health Organization. Country Office for Indonesia. (‎2024)‎. Global Adult Tobacco Survey (‎GATS)‎ Indonesia Report 2021. World Health Organization. Country Office for Indonesia. https://iris.who.int/handle/10665/378343. License: CC BY-NC-SA 3.0 IGO

[3] https://www.generationsanstabac.org/fr/actualites/indonesie-introduit-de-nouvelles-mesures-antitabac-pour-proteger-les-enfants-et-adolescents/

[4] https://insightplus.bakermckenzie.com/bm/healthcare-life-sciences/indonesia-gr-28-unveiled-implementing-regulation-of-the-health-omnibus-law-is-finally-starting-to-kick-off (accessed 09/17/2024)

[5] https://www.mdpi.com/1660-4601/16/13/2330 (Accessed 09/17/2024)

[6] Canadian Cancer Society, Cigarette package health warnings, 10/2021