Indonesian Parliament Questions Health Ministry's Authority on Plain Packaging

Regulatory Conflict Emerges Over Tobacco Packaging

The Indonesian House of Representatives has raised significant concerns regarding the Ministry of Health's authority to implement the plain packaging policy for cigarettes as stipulated in Government Regulation (PP) 28/2024. Muhammad Misbakhun, Chairman of Commission XI from the Golkar Party, has been vocal about the potential regulatory overreach by the Health Ministry.

Jurisdictional Dispute

Misbakhun emphasized that matters related to packaging standards fall under the jurisdiction of the Ministry of Industry (Kemenperin), not the Health Ministry. This perspective suggests that the plain packaging policy could be considered 'the wrong department' and potentially violates existing regulations on trademark protection and business competition.

Industry Impact

The controversy surrounding the plain packaging policy has significant implications for major tobacco companies listed on the Indonesian Stock Exchange, including HMSP (PT Hanjaya Mandala Sampoerna Tbk), GGRM (PT Gudang Garam Tbk), and RMBA (PT Bentoel Internasional Investama Tbk). These companies may face regulatory uncertainty and potential trademark disputes if the policy is implemented.

Stakeholder Reactions

Various stakeholders in the tobacco industry have expressed opposition to the plain packaging policy, citing concerns about its impact on their businesses and the potential for regulatory conflicts. The opposition from Commission XI of the DPR RI adds weight to these concerns and may influence the future direction of the policy.