PP 28 of 2024 Concerning Cigarette Advertising Zoning Deemed to Have the Potential to Trigger Mass Layoffs

JAKARTA – Business people and creative industry players have expressed their rejection of Article 449 in Government Regulation (PP) Number 28 of 2024. This specifically regulates the zoning prohibition of outdoor media advertising within a radius of 500 meters from educational units and children’s play areas.

Chairman (Ketum) of the Indonesian Outdoor Media Association (AMLI), Fabianus Bernadi, said that this regulation has the potential to cause negative impacts on the advertising industry and its derivative sectors. Among them, suppressing the prevalence of smokers is not achieved, and increasing new unemployment.

“There will likely be layoffs, because this will have a domino effect, one of which is on the lower middle class creative industry. So, the impact is quite significant,” said Fabianus in a discussion in Menteng, Jakarta, Wednesday (28/8/2024).

He saw the derivative of this PP, setting strict rules for advertising tobacco products and e-cigarettes. Based on Article 449 paragraph (1), advertisements may not be placed in sensitive areas such as health facilities, educational institutions, children’s play areas, places of worship, and public transportation.

As a result, from 57 companies spread across 26 cities, affected by this regulation. Even the industry that relies 75 percent on cigarette products, as many as 25 percent of companies are predicted to go bankrupt immediately.

“For example, in Bali, there have been reports that a music festival was cancelled because it did not get cigarette sponsorship. Advertisers did not dare, because they were afraid of violating PP 28,” he said.

Fabi even revealed that his party was never involved in the process of making the regulation. In fact, when the PP was still in the form of a draft (RPP), the foreign media industry was already affected. This is because the contribution of cigarette sponsors is quite large.

“This is not just a matter of 500 meters from the educational unit. But it should not be placed on the main road. I think it should be removed because the advertisement should be in a crowded place,” he stressed.

Meanwhile, the Head of Public Policy for the Indonesian Employers’ Association (APINDO), Sutrisno Iwantono, suggested that this regulation be revised.

“If it cannot be canceled, it can be postponed. The implementation can be postponed. We hope the government will accommodate,” said Sutrisno.

As a multi-sector association, APINDO agrees with the many inputs regarding PP 28/2024. Before advertising, tobacco first, then food and beverage actors and trade, all have the same complaints.

“Advertising restrictions are for that, part of tobacco. Our concern is that policies should not come suddenly. The government has not accommodated the aspirations of the people. This has caused extraordinary turmoil. This indicates that there has been no communication between the government and business actors,” he said.

(maf)