Indonesia's Labor Ministry warns plain‑pack tobacco rule could trigger mass job losses

The Ministry of Labour (Kemnaker) said plans to introduce plain packaging for tobacco products must be examined carefully. Minister Meinar Kusumo noted the tobacco sector is a highly labour‑intensive industry, employing an estimated 5.3 million workers from cultivation to retail, with some studies suggesting up to 6‑9 million jobs. Most employees are women with limited education, making them vulnerable if regulations cause layoffs. Kusumo warned that dismissals would affect entire families, potentially worsening children’s education, health and nutrition. The ministry urged that any stricter regulation be paired with mitigation measures, such as skills‑training programmes, use of tobacco tax revenues to boost worker competence, and the Job Loss Guarantee (JKP) scheme under BPJS Ketenagakerjaan, though it currently does not fully cover informal workers. The ministry recommended postponing tighter rules until viable alternatives are in place.