Retailers puffing mad as Indonesia bans single-cigarette sales, raises smoking age

A new regulation aimed at curbing tobacco use is eliciting both praise and opposition in Indonesia, the world’s second-largest cigarette market with around 70 million smokers.

President Joko “Jokowi” Widodo last week enacted a regulation prohibiting the retail sale of individual cigarettes, increasing the legal age for tobacco purchases from 18 to 21, and tightening restrictions on advertising and online sales.

Supporters of the regulation applaud the government’s initiative to tackle the escalating public health issue of tobacco use. This bold move, they argue, is a significant step towards reducing the smoking rate in the land of clove cigarettes, particularly among youths.

Opponents, however, warn that the policy could threaten the survival of the country’s tobacco industry, which employs millions of people, while small retailers fear that the ban on sales of single smokes could burn a hole in their livelihood. 

“We hope the new regulation will be implemented consistently,” said Hasbullah Thabrany, chairman of the National Commission on Tobacco Control. “That is important because this is the first step.”

The regulation also bans the sale of cigarettes within 200 meters (656 feet) of educational institutions and children’s playgrounds. The exception to the retail ban is for cigars and electronic cigarettes, which can still be sold individually.

Some experts questioned the practicality of enforcing such measures in a nation where smoking is deeply ingrained in the culture and economy, in the absence of specific sanctions for violators.

“There are many regional regulations regarding smoke-free zones, but adherence is still low,” said Sumarjati Arjoso, chair of the Tobacco Control Support Center.

“Who will enforce the ban? The oversight is also a critical element of this regulation,” he added.

Siti Nadia Tarmizi, spokesperson for the Health Ministry, said further details on sanctions would be addressed in a forthcoming ministerial regulation.

Indonesia, where a pack of cigarettes can cost as little as U.S. $1, remains the only country in Asia that has not ratified and signed the WHO Framework Convention on Tobacco Control. This landmark treaty came into effect in 2005 to target a global tobacco epidemic. It provides legal frameworks for international cooperation on tobacco control.

In a stark contrast to the worldwide decrease in tobacco use, Indonesia has witnessed a rise in smoking rates, with the World Health Organization reporting in January that 38.5% of Indonesians over the age of 14 used tobacco products in 2022.

A staggering 35.4% of adults use tobacco, totaling over 70 million individuals, according to the WHO.

This figure is alarming, especially when compared to the global decline in tobacco use, which is expected to fall from 26.4% in 2010 to 18.1% by 2030, WHO said. Conversely, Indonesia’s rates are projected to rise from 33.2% to 38.7% within the same period, it said.

WHO said tobacco companies are aggressively marketing new nicotine and tobacco products, like e-cigarettes, to young people through targeted advertising and flavorings.

Euromonitor International, a research firm, said in a 2022 report that Indonesia’s cigarette market was valued at $34 billion.

‘Foreign agenda’

The Indonesian cigarette industry employed close to 6 million people in 2019, according to the Ministry of Industry.

With household expenditure on cigarettes second only to rice, according to a 2022 national socio-economic survey, the government faces a challenge in balancing public health and economic interests.

“The government regulation could have a devastating impact on the tobacco industry,” said Hananto Wibisono, former secretary general of the Indonesian Tobacco Community Alliance.

Henry Najoan, chair of the Combined Association of Indonesian Cigarette Manufacturers, agreed, saying the regulation would cause many small- and medium-sized producers to struggle to adapt and potentially go out of business.

“It’s part of a foreign agenda to destroy Indonesia’s tobacco industry,” he alleged.  

Healthcare costs tied to smoking are also chewing into the nation’s economy.

According to a study conducted by University of Indonesia researchers, the economic cost of smoking-attributable diseases in Indonesia for 2019 ranged from $12 billion to $27 billion – about 1.16% to 2.59% of the gross domestic product (GDP).

This cost includes both direct healthcare costs and indirect costs such as loss of productivity due to absence from work and premature death. 

The ban on sales of single cigarettes has been in the works for several years. Previous regulations did not include such a ban.

In December, President Jokowi acknowledged that other countries had already implemented similar policies and that Indonesia was late in adopting them.

Aryana Satrya, a researcher at the University of Indonesia, urged the government to increase tobacco taxes if it was serious about reducing the prevalence of smokers.

“In the future, the government should raise tobacco taxes so that cigarette prices become unaffordable,” Aryana said, adding his research showed that if cigarette prices reached 60,000 rupiah ($4), an estimated 60% of smokers would quit.

Ede Surya Darmawan, chair of the Indonesian Public Health Experts Association, said the government could adopt special permits for tobacco sales, similar to those for alcohol.

“That way, operating without a license would constitute a breach of regulations and could result in criminal charges,” Ede said.

Defan Azmani, a small grocery store owner in Depok, on the outskirts of Jakarta, objected to the ban on retail cigarette sales, saying it would significantly reduce his income.

“If you really want to reduce cigarette consumption, just ban everyone from selling cigarettes,” Azmani said, claiming that 70% of his store’s income comes from cigarette sales.

“If the sale of retail cigarettes is banned, where else will my store’s income come from?”