Indonesia’s Proposed Nicotine and Tar Limits Raise Tobacco Industry Job Concerns
Indonesia is preparing maximum nicotine and tar limits under implementing rules for PP 28/2024. Tobacco companies and farmer groups warn that the proposal could reduce kretek production, demand for domestic leaf and employment, while the government frames the measure as a public-health regulation.
Implementing rules bring product limits closer
Indonesia’s tobacco industry is warning of pressure on factories, workers and farmers as the government prepares maximum nicotine and tar limits under Government Regulation No. 28 of 2024, known as PP 28/2024. The regulation implements the 2023 Health Law and requires producers, importers and distributors of tobacco products to comply with maximum thresholds, test every product variant in an accredited laboratory and report the results to the national food and drug regulator.
A 2025 coordinating-minister regulation established the process for setting the limits, including technical preparation, initial and final plenary discussions, adoption, public communication and evaluation. The government held a public consultation on the underlying study on March 10, 2026, with comments accepted until March 30. The Jakarta Post reported that the implementing measures were expected by July 26, 2026, two years after PP 28/2024 was enacted.
Kretek economics face the greatest pressure
According to legal intelligence firm NOMOS, the Health Ministry proposed a maximum nicotine level of 1 milligram and a maximum tar level of 10 milligrams, based on recommendations from an expert study. The proposal envisaged a five-year phased implementation, particularly for kretek cigarettes. Benget Saragih, head of the working team for controlling tobacco-related disease, said the principal difficulty concerned kretek, while electronic cigarettes and white cigarettes averaged 1 milligram of nicotine.
The proposed specifications could affect the choice and volume of leaf bought by manufacturers. ANTARA reported that the Indonesian Tobacco Farmers Association, or APTI, believes nicotine and tar limits could reduce purchases of domestic tobacco because almost all farmers’ output is currently absorbed by the tobacco-products industry. APTI Secretary-General Pambudi said most industrial raw material comes from within Indonesia, meaning a change in specifications would pass directly through to growers.
Employment, revenue and illicit trade enter the debate
Industry groups argue that lower legal cigarette production would force manufacturers to cut costs and could result in layoffs. Media Indonesia cited the Confederation of Nusantara Trade Unions as saying that reduced cigarette output could make workforce reductions unavoidable. The publication also reported Industry Ministry data showing that tobacco products contributed 4.22% of gross domestic product, while tobacco excise revenue reached Rp216.9 trillion in 2024, equal to 72% of total customs and excise receipts.
The Jakarta Post said employers were also concerned about plain packaging and restrictions on additives, alongside nicotine and tar limits. Companies contend that tighter rules could weaken legal sales and encourage illicit cigarettes. Public-health authorities take a different position: the World Health Organization says Indonesia strengthened tobacco control through the 2023 Health Law and PP 28/2024, while arguing that industry pressure has slowed implementation. The policy choice now turns on the final thresholds, transition period and enforcement design. These details will determine whether manufacturers can reformulate products without a sharp fall in demand for local tobacco or employment.
