Ban on Selling Cigarettes in Retail and the Fate of Small Traders

Selling cigarettes in retail is now prohibited. (SPC)

The ban on selling cigarettes in retail has sparked various reactions in society. This policy aims to protect public health, especially the younger generation, from the dangers of cigarette addiction. However, the potential impact of this policy on the economy of small traders who depend on retail cigarette sales also needs to be considered.

While large cigarette entrepreneurs have sufficient resources and marketing strategies to adapt to the new regulations, small traders in stalls and street vendors will feel the direct impact of this ban. The Daily Chair of the Kudus Cigarette Entrepreneurs Association (PPRK), Agus Sarjono, said that this policy is more burdensome for small business actors than large entrepreneurs.

Therefore, the implementation of this ban must be accompanied by a clear implementation mechanism. The government needs to determine whether there will be routine patrols by authorized officers or involve the community in reporting violations. Law enforcement must also be clear: who will be responsible, whether it is the Satpol PP, and how will sanctions for violations be applied?

Banning the sale of cigarettes in retail without providing concrete solutions for small traders is a decision that seems hasty. The government needs to consider alternatives that not only protect public health but also ensure the survival of small traders.

Entrepreneurship training programs and capital assistance can be considered as solutions to help small traders. With this support, they can switch to other sustainable and promising businesses.

The micro, small, and medium enterprise (MSME) sector, including small traders and street vendors, contributes greatly to the Indonesian economy. According to data from the Ministry of Cooperatives and SMEs, this sector absorbs more than 116 million workers and contributes around 60 percent of Indonesia's gross domestic product (GDP). This could include small cigarette traders.

Public health must remain a top priority. However, the economic impact of the ban on selling cigarettes in retail should not be ignored. Finding a balance between these two aspects is a major challenge for the government. With the right approach, it is hoped that this policy will not only protect public health but also maintain the welfare of small traders.

According to data from dataindonesia.id, Indonesia's cigarette production in 2022 reached 323.9 billion sticks. However, in 2023, production decreased due to a 10 percent increase in tobacco excise. However, in December 2023, cigarette production jumped again by 26 percent with total production reaching 318 billion sticks.

State revenue from cigarette excise is very significant despite experiencing the first decline in the last 10 years. In 2023, revenue from cigarette excise was recorded at IDR167.3 trillion, down from IDR170 trillion in the previous year.

The 2023 Indonesian Health Survey (SKI) revealed that the number of active smokers in Indonesia reached 70 million people, with 7.4 percent of them, or more than one million, aged between 10 and 18 years. The number of children and adolescent smokers is a serious concern because of the negative impacts of cigarettes on health such as the risk of heart disease, lung disease, and cancer.

Public health is a non-negotiable priority. However, the fate of small traders who have lost their source of livelihood must also be considered. If the government does not immediately take concrete steps, the potential for a spike in poverty rates could occur amidst efforts to reduce the number of smokers.

The government needs to act decisively with solutions that favor small traders so that this policy does not backfire and worsen the situation. Support for small traders must be part of efforts to protect public health. Do not let the fight against cigarettes actually add to the suffering of the common people who have struggled hard to survive. We must support policies that protect health while ensuring the survival of the common people.

Although various smoking ban regulations have been widely implemented and smokers are actually very limited in their freedom of movement, this policy must be balanced with solutions that support small traders so that they not only reduce the number of cigarette smokers but also pay attention to the socio-economic impacts caused.