DKI KTR Regulation is Considered a Middle Way between Health and Economy, Implementation is Asked to Remain Balanced

JAKARTA - DKI Jakarta Regional Regulation Number 7 of 2025 concerning the Smoke-Free Area has been considered to have tried to balance the interests of public health and business continuity.

The regulation is not immediately prohibited, but rather limited by zone arrangements.

The Chairman of the Indonesian Event Industry Council (IVENDO) DPD DKI Jakarta, Eka Nugraha, assessed that the substance of the Non-Smoking Area (KTR) Regulation has led to a compromise.

"I see this KTR Regulation as a middle ground. Restricting and not banning it completely. So, the balance for all parties is achieved," Eka told reporters, Tuesday, March 3.

According to him, the KTR regulation was made for the common good. However, in its implementation, the local government is expected to continue to consider the impact on the creative industry sector, including the event industry which absorbs many workers.

"We respect that the KTR is made for the common good. In its implementation, the KTR Regulation should still regulate which areas can and cannot smoke. Then, in the implementation practice in the field, it is still balanced in accommodating the sustainability of creative economy. So that it does not end up causing unrest," he explained.

Data from the National Event Industry Survey 2024-2025 recorded that the economic value of the event industry in Indonesia reached IDR 84.46 trillion with the potential to absorb around 8.8 million workers.

Throughout 2024, there are 8,777 events in 34 provinces with the same economic value, and Jakarta is one of the centers of activities, ranging from music festivals to art and cultural exhibitions.

However, since the issuance of Presidential Instruction Number 1 of 2025 until February 11, 2025, it was recorded that 638 events in 32 provinces had been canceled or postponed. The lost business value reached IDR 429.23 billion.

The most cancellations occurred in meetings (50.64 percent), followed by incentive events (12.82 percent) and training (10.90 percent).

Looking at the unstable global economic situation, Eka assessed that local governments needed to continue to encourage economic growth through potential sectors, including the creative economy.

"The creative economy is not only dynamic, but also opens up diverse job opportunities, including for young people and small and medium-sized businesses. Therefore, it is very important to protect the creative economy so that it can grow and become stronger," he said.

He also reminded that the discourse on a total ban on advertising, promotion, and sponsorship associated with the KTR Regulation should not be decided without considering the impact on regional revenue.

"So, if there are still parties who encourage a total ban on advertising, promotion and sponsorship related to the DKI Jakarta KTR Regulation, they must see and realize that the region also depends on PAD growth (local original income)," said Eka.

"If the PAD from the event and MICE industries decreases, the domino effect on hotels and restaurants will also decrease," he continued.