PRESS RELEASE “Joint Statement of the Indonesian Outdoor Media Companies Association: Reject PP 28/2024 and RPMK”

JAKARTA – The Indonesian Out-of-Home Media Association and Advertising Companies has conveyed its commitment to reject the policies contained in Government Regulation (PP) Number 28 of 2024 and the Draft Regulation of the Minister of Health (RPMK) on tobacco products and electronic cigarettes. This statement is a step to protect business continuity and demonstrate compliance with applicable regulations.

In the statement, the General Chairperson of The Indonesian Out-of-Home Media Association (AMLI), Fabianus Bernadi, stated his commitment to comply with Government Regulations and Indonesian Advertising Ethics. AMLI believes that creative education about the dangers of cigarettes is much more effective than a prohibition policy that is difficult to implement.

In addition, AMLI also supports the Government’s efforts to reduce the prevalence of child smokers and is committed to social responsibility in disseminating health-related information.

However, Fabianus expressed objections regarding Article 449 paragraph 1 (d) in PP 28/2024, which prohibits the placement of tobacco product advertisements within a radius of 500 meters from educational units and children’s play areas on Out-of-Home Media, and the time limit for displaying advertisements from 22.00 – 05.00 local time on Out-of-Home Media, as well as the existence of regulations on plain cigarette packaging without brands in the draft RPMK.

AMLI considers that this provision will be difficult to implement due to the lack of clarity in the definition of educational units and children’s play areas, as well as the potential for different understandings in the community, law enforcement, and business actors. The policy of plain cigarette packaging without brands will worsen the condition due to the threat of decreasing demand for tobacco product brand advertising in Out-of-Home Media.

“Therefore, AMLI and the Business Actors involved will only apply this provision to new investments, meaning new advertising point locations,” said Fabi, his nickname, in a press conference held in Jakarta, Wednesday, September 18, 2024.

He revealed the results of a survey involving 57 companies from 29 cities and regions in Indonesia regarding the impact of the Ministry of Health’s (Kemenkes) initiative policy. The survey showed that 86% of foreign media companies are expected to be affected by PP No. 28/2024, especially since cigarette advertisers are the main sponsors in this industry will be strictly limited.

The impact of the new regulation is expected to be very severe, with 44% of Off-Grid Media companies at risk of going bankrupt due to a significant decrease in revenue from cigarette sponsorship ads. In detail, 21% of companies will lose 50-75% of their revenue, while another 23% will lose 75-100% of their revenue. In addition, more than 59% of the workforce, both direct and indirect, are at risk of being laid off.

“It is feared that this impact will cause mass layoffs and potential bankruptcy that could worsen the economic conditions in this sector. Their income is expected to decline, and the threat of layoffs reaches 59 percent. Sadly, the majority of this percentage are small entrepreneurs with a medium to low business scale,” he said.

On the same occasion, Deputy Chairman of the Indonesian Advertising Council (DPI) and General Chairman of The Indonesian Advertising Companies Association (P3I), Janoe Arijanto highlighted the implementation of Article 449 paragraph 2 in PP 28/2024 concerning the prohibition of showing tobacco product advertisements on Digital Out-of-Home Media (videotron) from 22.00 to 05.00 local time.

Moreover, based on several regional regulations (perda), especially videotrons outside Jabodetabek have stopped operating at that time, so that in practice this provision is the same as a total ban on tobacco product advertising.

DPI also proposed that the articles related to the standardization of packaging, writing, and packaging design of tobacco and electronic cigarette products that regulate plain packaging in the RPMK be removed. Plain cigarette packaging without a brand will eliminate brand identity and reduce the effectiveness of product promotion, because all products will look similar without any clear differences.

As affected stakeholders, DPI together with the Creative and Advertising Industry emphasized that tobacco product advertising contributes significantly to business continuity and regional income.

“We ask for government wisdom in drafting regulations that are fair and in accordance with field conditions,” said Janoe.

Furthermore, he asked the Government to conduct ongoing dialogue and urged stakeholders in the Out-of-Home Media, Advertising and Creative Industries to be involved in the revision process to ensure fairer and more industry-appropriate regulations.

“We also propose that the government create new regulations on advertising that provide space for the sector to diversify so that it does not only depend on tobacco products,” he added.

Finally, Janoe asked for the Government’s support to support the sustainability of the Out-of-Home Media Industry and ensure more balanced regulations. “We ask and hope that the government supports the stance agreed upon by AMLI so that there is certainty of business,” he concluded.

Media Coverage:

PRESS RELEASE “Joint Statement of the Indonesian Outdoor Media Companies Association: Reject PP 28/2024 and RPMK”

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