Legislative members are concerned that the policy on plain, unbranded cigarette packaging in the Draft Minister of Health Regulation (RPMK) will trigger the phenomenon of widespread layoffs (PHK) in the national tobacco products industry sector. It is feared that this will worsen the wave of layoffs in many sectors that have already begun to occur.
Member of the DPR RI Commission IX NasDem Fraction, Nurhadi, said that so far the tobacco products industry has been a source of livelihood for many parties, from small traders, the printing industry, farmers, to workers who are part of the ecosystem.
He said that policy formulation must be done carefully. The reason is, tobacco products contribute 50-80% to turnover for small traders. Apart from that, according to Nurhadi, the current weakening of Indonesia’s social and economic conditions must also be taken into consideration.
Nurhadi said the tobacco products industry is one of the main supporters of the economy, especially in relation to the employment of more than 6 million workers in it. Not to mention the contribution of the tobacco products industry to state revenues from excise which reaches hundreds of trillions each year.
“Don’t let it happen, if this RPMK is not corrected or evaluated, apart from causing commotion within the country, this will of course also have the potential to reduce around 6 million workers,” said Nurhadi in a written statement, Tuesday (22/10).
Therefore, Nurhadi asked the Ministry of Health to correct the RPMK and also listen to the aspirations of various affected parties so that they can produce fair regulations. That way, he said, national interests can be achieved.
“There are so many affected parties. Regulating it cannot be haphazard and the Ministry of Health must accommodate the aspirations of the affected parties,” he said. (Z-11)
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Interview with Nurhadi, Member of DPR RI Commission IX, on Plain Cigarette Packaging Policy
Editor: Thank you for joining us today, Nurhadi. The Draft Minister of Health Regulation proposes a plain, unbranded cigarette packaging policy. Can you tell us why this has raised concerns among legislative members?
Nurhadi: Thank you for having me. The primary concern revolves around the potential impact on the tobacco industry, which provides livelihoods for millions of Indonesians. The introduction of plain packaging could significantly reduce brand differentiation, leading to a drop in sales and, ultimately, job losses in an industry that is already facing challenges.
Editor: You mentioned the risk of widespread layoffs in the sector. Can you elaborate on that?
Nurhadi: Certainly. We are already witnessing layoffs in various sectors across the economy due to various factors, including the aftermath of the pandemic. The tobacco industry is particularly sensitive to changes in regulation. If sales decline as a result of this policy, it could lead to more significant layoffs, compounding the struggles of workers and their families who depend on this industry for their survival.
Editor: Are there any alternative approaches that you believe could balance health concerns with economic stability?
Nurhadi: Yes, I think it’s crucial to consider regulations that promote public health without devastating the livelihoods of those who work in the tobacco industry. We could explore educational campaigns or targeted taxation that encourages responsible consumption while allowing for branding that can mitigate economic fallout. Collaboration between health officials and industry stakeholders is essential for developing a comprehensive approach.
Editor: Thank you for your insights, Nurhadi. It’s evident that this issue requires careful consideration of both public health and economic implications.
Nurhadi: Thank you, and I appreciate your focus on this important topic.
Editor: You mentioned the risk of widespread layoffs in the sector. Can you elaborate on how significant this impact could be?
Nurhadi: Certainly. The tobacco industry is a major employer in Indonesia, with over 6 million workers relying on it for their livelihoods. Many small traders, farmers, and those involved in printing and production depend on the tobacco ecosystem. If sales decline due to plain packaging, we could see major employment disruptions, exacerbating the already challenging economic situation in the country.
Editor: What specific groups or sectors do you feel will be most affected by this policy?
Nurhadi: The small traders and retailers, who often see 50-80% of their turnover from tobacco products, could be particularly vulnerable. Farmers growing tobacco will also face reduced demand, and industries tied closely to tobacco production, such as printing and logistics, will likely feel the ripple effects. We need to consider how this impacts the livelihoods of millions who are already struggling.
Editor: How do you suggest the government address these concerns while still pursuing public health goals?
Nurhadi: It’s essential that the Ministry of Health consults all stakeholders involved in the tobacco sector before implementing such policies. A careful and balanced approach can mitigate economic harm while promoting public health. This means reviewing the RPMK carefully and ensuring that any regulation takes into account the economic realities and feedback from affected parties.
Editor: In your view, what steps should be taken to better balance these interests?
Nurhadi: Greater dialogue is necessary. The Ministry should organize discussions or forums involving all relevant parties—from industry workers to public health advocates—to gather insights and potential solutions. This collaborative approach will help in crafting regulations that protect health without jeopardizing livelihoods.
Editor: Thank you, Nurhadi, for sharing your insights on this important issue.
Nurhadi: Thank you for having me. It’s crucial that we keep this dialogue open as we navigate these challenges together.
