Hippindo Soroti KTR DKI Regulation, Requests Removal of Prohibition on Sale and Smoking of Cigarettes

JAKARTA - The Indonesian Association of Retailers and Renters of Shopping Centers (Hippindo) highlighted the Draft Regional Regulation on Smoke-Free Areas (Raperda KTR) of DKI Jakarta which was agreed upon in the DKI Jakarta DPRD Plenary Session on Tuesday, December 23, 2025.

Hippindo assessed that a number of provisions in the regulation have the potential to have an impact on the sustainability of modern retail businesses.

The General Chair of Hippindo Budiharjo Iduansjah asked policymakers to consider the economic and business ecosystem aspects before the regulation was passed. He assessed that the policy of a smoke-free area should not lead to excessive restrictions that would harm traders and business actors.

"It must be really considered, so that the name of the smoke-free area does not harm traders, retail business actors, and the business ecosystem within it. That's what really has to be thought about. Including in it related to the prohibition of sales and the prohibition of smoking," said Budiharjo to reporters, Tuesday, December 30.

Budiharjo also touched on the results of the facilitation of the Directorate General of Regional Autonomy of the Ministry of Home Affairs (Kemendagri) regarding the KTR Regional Regulation. According to him, the recommendations should be a reference in improving the rules.

He said that the results of the Ministry of Home Affairs facilitation, which can be accessed by the public, recommended the deletion of the article prohibiting the smoking of cigarettes because it has no legal basis. In addition, the prohibition on selling and/or buying cigarettes in public places is excluded for locations that organize economic activities.

Hippindo assessed that the excessive and restrictive implementation of the KTR Regional Regulation was at risk of being difficult to implement in the field. In fact, the policy is considered to have the potential to create new problems.

According to Budiharjo, restrictions on the sale and manufacture of cigarettes risk encouraging the circulation of illegal cigarettes. He assessed that the focus of policy should be directed at taking action against illegal products.

"It should focus on the illegal thing. Energy and effort are directed at eradicating illegal cigarettes. As directed by the Minister of Finance, if there is no solution to absorb labor and revenue, do not make regulations that prohibit it," he said.

He also emphasized that business actors should not be burdened with rules that are considered confusing. Budiharjo said that retail actors had carried out their obligations not to sell cigarettes to children in accordance with applicable regulations.

"Don't let business actors be confused by the current situation. The most important thing is how commitment and implementation to not sell cigarettes to children and we have implemented this. We retail business actors have complied with all existing regulations," continued Budiharjo.

Currently, Hippindo oversees 203 modern retailers with a workforce of around 800 thousand people. According to him, the retail sector has a significant contribution to the economy, especially in terms of employment.

Hippindo hopes that the DKI Provincial Government and the DKI Jakarta DPRD will be careful before passing the KTR Raperda. All inputs from affected stakeholders are requested to be reconsidered.

"We will still control this KTR Regional Regulation. This legal industry and product that has obeyed the rules, is actually complicated. Making new rules can actually trigger an increase in illegal cigarettes that do not meet safety standards," he concluded.