Indonesia has enacted a new health bill and the cigarette industry will face tighter controls.

The Indonesian government’s changes to the health bill have sparked controversy. The cigarette industry is concerned that the new health bill could hurt industries related to its business, including labor, farmers, retail, and advertising. The passage of the bill could cost China up to 10.3 trillion rupees (about 87.7 billion yuan).

 

According to Indonesian media Kompas. com on December 28, the Indonesian government is working with the Ministry of Health to develop a health government regulation. (RPP), as the Health Act (UU) derivative Regulation No. 17.

 

Key issues in health regulations include the management of health workers, integration of primary health services, care for non-communicable diseases, protection of addictive substances in tobacco and vape brands, the rescue of anomalies and outbreaks, health financing, community engagement, guidance, and governance of surveillance.

 

One of the main elements is the regulation of addictive substances, including cigarette products and vapes. While the law and regulation were intended to improve public health, the bill was controversial.

 

The tobacco products industry is a labor-intensive industry that provides many benefits to the Indonesian economy. Critics argue that the measures covered by the regulation cover the tobacco products industry. (IHT) and the product is discriminatory.

 

According to Kemenperin data, in 2018, the tobacco products industry absorbed 5.98 million workers from 4.28 million production distributors and 1.7 million cultivation units. The industry also contributes significantly to national revenue. Through exports, the cigarette processing industry contributes hundreds of millions of dollars to Indonesia.

 

Separately, the Indonesian Tobacco Products Industry (IHT) tobacco tax has provided the country with a wealth of Rs 21.8 lakh crore and Rs 18.88 lakh crore through (CHT) in 2022 and 2021 respectively.

 

The Indonesian Institute of Economic and Financial Development (Indef), according to the results of a study released in Jakarta on December 20, if the health plan is approved, the loss of the country will reach 10.3 trillion rupees (about 87.7 billion yuan).