The Fate Of The Cigarette Industry Is Increasingly Vulnerable, The House Of Representatives Highlights The Fate Of Tobacco Farmers And Kretek Girls

Photo by Afif Ramdhasuma on Unsplash

JAKARTA - The DPR has warned of the implementation of Government Regulation (PP) Number 28/2024 concerning the Implementation Regulation of Law Number 17 of 2023 concerning Health because it has a broad impact on the national cigarette industry. In addition to making the kretek cigarette factory threatened to close, tightening regulations through these regulations can also harm tobacco farmers and small industrial workers.

Member of Commission IV Daniel Johan said the government must consider the big impact received by the small people from the implementation of PP 28/2024. The scope of securing Addictive Substances contained in Article 429-463 in PP 28/2024 is considered to have a double impact (multiplier effect) on the continuity of the national kretek industry. legal in the country.

"This regulation can have an impact on mass layoffs to the economic downturn of tobacco farmers and MSMEs," said Daniel Johan, Tuesday (3/9/2024).

"The policies made by the Government must defend the small people. In addition, the industry also needs to be protected because if the factory goes bankrupt due to the regulations issued, there will be a large wave of layoffs and the impact of unemployment will increase," he continued.

One of the articles in PP 28/2024 that is considered to have an impact on the cigarette industry is Article 435 which reads "Everyone who produces and/or imports tobacco products and electronic cigarettes must meet the packaging standardization consisting of design and writing".

According to Daniel, the policy could result in a decline in demand for cigarette raw materials. This decline has a significant impact on various aspects, especially in terms of economic and social aspects.

"Many workers in the cigarette industry, including tobacco farmers and cloves, factory workers, especially creative cigarette MSMEs such as kretek girls, logistics workers and others. If the factory closes they will lose their jobs," said Daniel.

This legislator from the West Kalimantan electoral district I reminded that the closure of cigarette factories could increase poverty and social economic instability in affected areas. Daniel said the government should look at the situation and take consideration in making policies.

"This cigarette problem is complex. Win win solution steps should be sought so that tobacco control efforts for the sake of public health do not have an impact on economic sustainability for those who depend on this industry," he explained.

Daniel assessed that PP 28/2024 has the potential to create new social conflicts in its supervision of the implementation of the 'batman trap' articles. He is worried that these regulations will not necessarily be able to achieve the purpose of making them because they are not effective in the field.

"The government must design supervision from the implementation of the regulation. Do not let the social and economic impacts caused by there is no solution," said Daniel.

There are various social impacts due to PP 28/2024 on the cigarette industry, ranging from the absorption of tobacco and domestic cloves to decline sharply and the huge negative impact on the welfare of tobacco farmers, cloves, logistics workers, domestic traders and loss of living along the value chain of the national legal kretek industry.

According to Daniel, this situation has exacerbated the national legal kretek industry, which is already in a vulnerable condition, marked by a decrease in the number of factories from 4,000 in 2007 to 1,100 factories in 2022. Inevitably, the government needs to be prepared to face a large wave of unemployed which will provide economic and social consequences.

Unemployment will increase the country's economic burden, and make it difficult for vulnerable families. The rules that contain many articles "batman traps" for kretek cigarette industry players are also very detrimental to tobacco farmers whose current conditions are also difficult," said Daniel.

Not to mention the layers of other kretek cigarette industry players. Remember, there are many cretek girls' who make a living from this industry," he added.

Furthermore, Daniel said that the cigarette industry is one of the main contributors to state revenue through excise. The closure of cigarette factories will reduce state revenue from tobacco excise (CHT), which could have an impact on the state budget.

"We know that in the Financial Note of the Draft State Revenue and Revenue Budget (RAPBN) for Fiscal Year 2025, the Government targets an increase in excise revenue by 5.9% to Rp 244.198 trillion. If there is a regulation, this target could not be achieved," said Daniel.

The implementation of PP 28/2024, especially Article 429-463, also regulates criminal sanctions for those deemed detrimental to the MSMEs in the cigarette industry. Daniel said that many aspects of the slice made it difficult through the regulation.

"In addition to farmers, we must also defend MSMEs, they do not have a large income. Now the regulations make it even more difficult for them, the government must go to the field to see the reality of the people. Even though MSMEs are a big contributor to the country's economy," he said.

Daniel said that the Government needs to coordinate and dialogue with all relevant parties such as cigarette industry players, tobacco farmers and health organizations so that implementation runs according to their goals. He is worried that the implementation of the regulation will not be in accordance with the government's target and will become a problem in the future.

"This is important to understand the impact of regulation and find balanced solutions," said Daniel.

Commission IV of the House of Representatives in charge of agricultural affairs also reminded the Government to pay attention to the real sector of policy making. In this case, said Daniel, especially tobacco farmers and MSME industry players.

"The government must be present to fight for the interests of the small people. This policy can have a lot of impact from an economic and social perspective," he said.

"The cigarette industry is Indonesia's strength, don't let this power be destroyed by global conspiracies and eventually backfire for Indonesia," concluded Daniel.