GAPPRI Affirms Rejecting PP Number 28 Of 2024 And Derivative Rules

JAKARTA - The Association of Indonesian Cigarette Factory Associations (GAPPRI) rejects the enactment of Government Regulation (PP) Number 28 of 2024 Chapter XXI concerning the security of addictive substances contained in Article 429 - 463 and its derivative regulations (Creation of the Regulation of the Minister of Health).

According to the General Chairperson of the GAPPRI Association, Henry Najoan, the scope of the arrangement will kill the continuity of the Tobacco Products Industry (IHT).

"PP 28/2024 will cause unfair competition and trigger the spread of illegal cigarettes," he said in Jakarta, quoted by Antara, Monday, January 13.

He stated that the process of making these regulations was minimally transparent and did not involve IHT players, causing imbalance in the resulting legal products, thus potentially causing significant negative impacts, not only for the industry, but also for the overall national economy.

According to Henry Najoan, efforts to immediately implement PP 28/2024 show that the Ministry of Health represents the Framework Convention on Tobacco Control (FCTC) agenda rather than protecting the benefit of the people affected by the arrangement.

He emphasized that IHT is the party directly affected by this regulation, thus, it should have the right to be heard and involved in the process of discussing the regulation.

"GAPPRI urges the government to open an inclusive and transparent dialogue space in making fair and balanced regulations. This is very necessary to ensure industrial sustainability, protect millions of workers, and maintain national economic stability," Henry said in his statement.

Therefore, GAPPRI hopes that the government can consider input from all stakeholders, including industry players, in order to create policies that not only protect public health, but also not sacrifice economic and social interests.

He hopes that the government will not make policies such as PP 28/2024 which regulates tar and nicotine restrictions, prohibiting additional materials and inappropriate packaging uniformization in Indonesia that has special products such as kretek.

"With the prohibition of additional materials, it will make tobacco farmers and cloves not absorbed by their crops," he said.

Referring to GAPPRI data, IHT is one of the national strategic sectors that employs approximately 5.8 million people, ranging from tobacco farmers, factory workers, to distributors.

According to him, IHT has experienced heavy pressure, as evidenced by the failure to achieve the excise revenue target in 2024, which means that the second consecutive CHT target has not been achieved.

In 2024, the excise target of IDR 230.4 trillion will only be able to be increased by IDR 216.9 trillion.

"Excessive and disproportionate regulation against the tobacco products industry will disrupt national economic stability, considering that the national kretek contribution to state revenue through excise, tax, and labor-intensive employment is very significant," said Henry Najoan.