The tobacco industry in Indonesia has far-reaching implications for the economy as it involves numerous downstream industries, contributing significantly to the country's economic landscape. Therefore, policies related to this sector should engage all relevant stakeholders across ministries to ensure that resulting policies are balanced and equitable.
Carmelita Hartoto, Vice Chairman of the Indonesian Chamber of Commerce and Industry (KADIN) in charge of Human Resource Development, Research, and Innovation Coordination, emphasized that the tobacco industry provides employment for millions of Indonesians, including tobacco farmers. She stressed the importance of careful and calculated adjustments in future regulations, based on public health concerns, to maintain a balance and the sustainability of the tobacco industry and the welfare of the broader population.
According to a study by the Indonesian Cigarette Manufacturers Association (GAPPRI), current government regulations on the tobacco industry are already burdensome. This is evident from the decline in the number of cigarette factories, which decreased from 4,669 in 2007 to 1,100 in 2022. Carmelita also suggested that in formulating tobacco sector policies, the government should consider economic aspects alongside health considerations to ensure the sustainability of the sector, including job creation and government revenue. Addressing the challenges of the tobacco industry requires a holistic approach to achieve positive outcomes for all relevant stakeholders.
