Potential Massive Layoffs Threatened by New Indonesian Tobacco Legislation

Sep.12.2024
Potential Massive Layoffs Threatened by New Indonesian Tobacco Legislation
Indonesian workers may face massive layoffs due to new health regulations on tobacco and e-cigarette products in 2024.

According to a report from TEMPO.CO on September 11, Sudarto AS, chairman of the Federation of All Indonesian Workers Unions for Tobacco, Food and Beverage Workers (FSP RTMM - SPSI), stated that the Government Health Regulation No. 28 of 2024 and the legislation on tobacco products and e-cigarettes may result in mass layoffs.


Sudato stated in a press conference that approximately 6 million workers depend on the tobacco industry, and if each worker supports two children, around 24 million people will be affected. He emphasized that even though the new regulations primarily target the distribution process, slowed sales will also impact the entire industry.


The Deputy Chairman of the Indonesian Employers Association (Apindo), Franky Sibarani, also expressed opposition to the new regulations, believing that their impact could surpass that of the COVID-19 pandemic. Apindo and 20 other industry associations are against destructive clauses in the regulations, such as the prohibition of unbranded packaging, limits on tar nicotine levels, and restrictions on sales radius. They are calling for all affected parties to participate in policy-making, emphasizing that regulations should not hinder job security and income protection, as these are basic rights of workers.


Sudato concluded:


We are not opposed to regulation, but these regulations should not interfere with job security and income security, which are part of protected workers' rights.


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