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Selling cigarettes by the stick is no longer allowed in Indonesia. Photo credit: Sarah Johnson, CC2.5
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The Indonesian government is trying to change the smoking culture in one of the world’s largest tobacco markets. Photo credit: Streetwindy, Pexels.
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Indonesia’s new law also extends to vapes.
Indonesia has long been recognized as one of the world’s largest tobacco markets, with a deep-rooted smoking culture. According to the World Health Organization (WHO), while the global rate of tobacco use among individuals aged 15 and older is on the decline, dropping from 26.4% in 2010 to an expected 18.1% by 2030, Indonesia stands out as one of only six countries where tobacco consumption is projected to rise—from 33.2% in 2010 to 38.7% by 2030.
Recent years have seen intensified government efforts to regulate tobacco products more strictly. The latest development in this regulatory push is the introduction of a new law that imposes stricter controls on the sales, marketing, and packaging of cigarettes and e-cigarettes.
The new law: an overview
This year, the Indonesian government passed a sweeping new law aimed at curbing the consumption of tobacco products and reducing smoking-related health risks. The law introduces stringent restrictions on the sale, marketing, and packaging of both traditional cigarettes and e-cigarettes. The key provisions of the law include:
- Marketing restrictions: One of the most significant changes under the new law is the tightening of marketing regulations for tobacco products. The law prohibits all forms of tobacco advertising across all media platforms, including television, radio, print, and digital. This includes both direct advertising and indirect marketing strategies such as product placement, sponsorships, and promotional events.
Additionally, the law bans the use of celebrities, influencers, or any public figures in tobacco-related promotions. This move is particularly aimed at reducing the appeal of smoking to younger audiences, who are more likely to be influenced by such endorsements.
Furthermore, point-of-sale advertising, which has been a common practice in Indonesia, is now severely restricted. Retailers are no longer allowed to display cigarette brands or logos in a way that makes them visible to consumers, and promotional materials such as posters, banners, and discount offers are strictly forbidden.
- Packaging regulations: The new law also introduces rigorous packaging regulations, requiring cigarette packs to now carry graphic health warnings that cover 85% of the packaging surface, up from the previous requirement of 40%. These warnings include images of smoking-related diseases and blunt messages about the health risks associated with tobacco use.
In addition to the expanded health warnings, the law mandates plain packaging for all tobacco products. For e-cigarettes, the law requires that packaging carry similar health warnings, with specific emphasis on the risks of nicotine addiction and potential harm from inhaling vaporized substances. The packaging of e-cigarettes must also be plain, with no branding or promotional elements allowed.
- Sales regulations: The new law imposes stricter controls on the sale of cigarettes and e-cigarettes. Under the regulations, the sale of tobacco products is banned within 500 meters of schools, playgrounds, and other locations where children are likely to be present. This measure is intended to prevent easy access to cigarettes for minors and to reduce the visibility of tobacco products in areas frequented by young people.
Additionally, the sale of single cigarettes, a practice that has been widespread in Indonesia, is now prohibited. Retailers are required to sell cigarettes only in full packs, with the aim of reducing the affordability and accessibility of tobacco products, particularly for low-income individuals and young people who may be more inclined to purchase single sticks.
For e-cigarettes, the law sets an age limit of 21 years for purchasing and using these products, higher than the age limit for traditional cigarettes, which is set at 18 years.
- Online sales and distribution regulations: The new law also targets the online sale and distribution of tobacco products, an area that has been difficult to regulate in the past. The law prohibits the sale of cigarettes and e-cigarettes through online platforms, including e-commerce websites, social media, and mobile apps.
In addition, the law mandates strict controls on the distribution of tobacco products. All distributors must be licensed and are required to keep detailed records of their sales and distribution activities. These records must be made available for government inspection, with the goal of ensuring that tobacco products are not being sold or distributed to unauthorized individuals or outlets.
Dissenting voices
The introduction of these stringent regulations has not been without controversy. Various stakeholders, including the tobacco industry, small retailers, and certain consumer groups, have voiced strong opposition to the new law.
Major tobacco companies argued that the law will have a devastating impact on their business, leading to significant job losses and economic downturns in regions heavily dependent on tobacco production. The industry has also challenged the effectiveness of the plain packaging requirements, arguing that they infringe on intellectual property rights and do little to re-duce smoking rates. Tobacco companies have pointed to studies from other countries that have implemented plain packaging, claiming that the measure has had minimal impact on smoking prevalence while severely damaging their brands.
Furthermore, the industry criticized the ban on advertising and point-of-sale promotions, arguing that these restrictions stifle competition and prevent consumers from making in-formed choices. They contend that the new law disproportionately targets legal tobacco products while failing to address the growing black market for counterfeit and smuggled cigarettes, which they claim will only flourish under the stricter regulations.
Small retailers also expressed concern about the impact of the new law on their businesses. Many of these retailers rely heavily on tobacco sales for their income, and the restrictions on advertising, point-of-sale promotions, and the sale of single cigarettes are expected to significantly reduce their revenue.
Retailers also raised concerns about the enforcement of the new regulations, particularly in rural areas where government oversight may be less stringent. They argue that the law could lead to increased opportunities for corruption and extortion, as local officials may exploit the complex regulations to extract bribes from small businesses.
Additionally, the ban on online sales was criticized by retailers who have increasingly relied on e-commerce to reach customers during the Covid-19 pandemic. They argue that the prohibition on online sales is outdated and fails to recognize the growing importance of digital platforms in the modern retail landscape.
Some consumer groups have also pushed back against the new law, particularly the restrictions on e-cigarettes. Vaping advocates have argued that e-cigarettes are a less harmful alternative to traditional smoking and that the new regulations unfairly target these products, potentially driving users back to smoking combustible cigarettes.
These groups also criticized the higher age limit for e-cigarette use, arguing that it unjustly restricts access for younger adults who may be using e-cigarettes as a smoking cessation tool. They contend that the government should focus on educating consumers about the risks of smoking and vaping rather than imposing blanket bans and restrictions.
Moreover, there has been resistance to the plain packaging requirements, with some consumers arguing that the measure infringes on their freedom of choice. They claim that the lack of branding makes it difficult to differentiate between products and may lead to confusion and frustration among consumers.
The government’s response
Despite the resistance, the Indonesian government defended the new law as a necessary step to protect public health, citing the high smoking rates in the country and the growing popularity of e-cigarettes among young people. Government officials pointed to the alleged success of similar regulations in other countries, such as Australia and the UK, where they said smoking rates declined following the introduction of plain packaging and stricter marketing controls.
The government also emphasized the need to reduce the burden of smoking-related diseases on the healthcare system, which is already strained by the ongoing challenges posed by the Covid-19 pandemic. They argue that the new law will help to prevent future health crises by reducing smoking prevalence and discouraging young people from taking up the habit.
In response to concerns from the tobacco industry and retailers, the government announced plans to provide support for small businesses affected by the new regulations. This includes financial assistance for retailers transitioning away from tobacco sales and training programs to help tobacco farmers diversify into alternative crops.
The government has also committed to stepping up enforcement of the new regulations, particularly in rural areas and in the online marketplace. They have pledged to work closely with law enforcement agencies to crack down on the illegal tobacco trade and ensure that the new regulations are implemented fairly and effectively.