Key insights and market outlook
The Jakarta Regional Legislative Council's proposed Total Smoking Area regulation has raised significant concerns among event organizers. The draft regulation includes a total ban on tobacco products and restrictions on advertising, promoting, and sponsoring in smoke-free areas. Industry leaders fear this could cripple the event sector, which is already experiencing a downturn due to efficiency measures by both central and local governments.
The Jakarta Regional Legislative Council has drafted a comprehensive Total Smoking Area regulation that includes a complete ban on tobacco products in the capital city. The proposed regulation, outlined in Article 18, Paragraph 2 of the draft, prohibits activities such as advertising, promoting, providing sponsorships, selling, and buying cigarettes in designated smoke-free areas.
Eka Nugraha, Chairman of the Jakarta branch of the Indonesian Event Industry Association (IVENDO), expressed significant concerns about the potential impact of these regulations on the event industry. According to Nugraha, the total ban and restrictions could severely impact the already struggling event sector. The industry is facing challenges due to efficiency measures implemented by both central and local governments, resulting in fewer events being organized.
The event industry in Jakarta is a significant contributor to the local economy, generating substantial revenue through various events throughout the year. A total ban on tobacco products and related activities could lead to loss of sponsorship opportunities and increased operational challenges for event organizers. This, in turn, may result in a decline in the number of events held in Jakarta, affecting not only the event industry but also related sectors such as hospitality and tourism.
The proposed regulation is part of a broader initiative to create smoke-free areas in Jakarta. While the health benefits of such a ban are clear, industry stakeholders are urging policymakers to consider the economic implications and potential unintended consequences on businesses that rely heavily on event organization and sponsorship.
Proposed Total Tobacco Ban
Event Industry Impact Assessment