Jakarta’s proposed smoke-free zone policy has sparked a heated debate between business groups and consumer advocates. The draft regulation, known as Raperda KTR, aims to expand restrictions on smoking in hotels, restaurants, cafés, bars, and public entertainment venues. While public health supporters welcome the move, business owners fear the rule could further damage an already struggling industry.
Business Groups Raise Concerns Over Smoke-Free Zone Policy
The Indonesian Hotel and Restaurant Association (PHRI) voiced serious concern about the proposal’s economic impact. The organization noted that stricter rules and penalties could reduce customer demand and create additional burdens for operators.
“We conducted a survey and opinion study. If the current regulation is replaced with a stricter Raperda KTR, 50% of business actors believe this will negatively impact their operations. We, as hotel, restaurant, and entertainment business players, are not against regulations. But we ask not to be overburdened,” said Arini Yulianti, a member of PHRI Jakarta’s Regional Board.
Arini pointed out that hotel and restaurant businesses have not fully recovered since the pandemic. In PHRI Jakarta’s April 2025 survey, 96.7% of hotels reported declining occupancy rates. “This year we’ve really been struggling. With such a restrictive regulation, demand for our businesses could fall even further. We fear that consumers may choose to go to other cities where the rules are not as strict as Jakarta,” she added.
Impact on Hotel Business and Employment
The potential impact on hotel business is also tied to employment and regional revenue. Jakarta’s hospitality industry employs more than 603,000 workers and contributes around 13% to the city’s locally generated income. Falling occupancy rates have already forced business owners to cut staff and tighten budgets.
“We ask that this situation be carefully considered. What we actually need is a balanced smoke-free policy. The regulation should not be rushed just to chase the status of being a global city without weighing the impact,” Arini explained.
Meanwhile, the Indonesian Employers Association (Apindo) called for more policy certainty during difficult economic times. “In our view, this draft regulation is not urgent. We respect Jakarta’s executive and legislative bodies, but given the industry’s unfavorable situation, an excessive policy could pose its own challenges for productivity. We hope the government continues to consider the industry. This is not the right timing. The socio-economic conditions of the community must also be taken into account,” said Anggana Bunawan, Deputy Secretary General of Apindo.
Consumer Advocates Push for Stronger Protection from Smoke
On the other side, consumer advocates argue that the regulation is long overdue. The Indonesian Consumers Foundation (YLKI) emphasized that every region must have a smoke-free policy, as mandated by the 2023 Health Law.
“We encourage this regulation to be expedited because it has been more than 10 years without being passed. Hopefully, the special committee can finish its discussions soon, so the regulation can finally be enacted in Jakarta,” said Rio Priambodo, Executive Secretary of YLKI.
Rio added that comprehensive rules are needed to protect the public from cigarette smoke in public spaces. “Jakarta needs comprehensive regulations to ensure people are truly protected from cigarette smoke. YLKI fully supports the acceleration of this regulation’s passage,” he explained.
The draft regulation provides smoking areas to balance fairness. “This regulation must not disrupt the economy, especially small and medium businesses. The key is fair policy: protecting non-smokers while ensuring smoking areas don’t interfere with people’s movement,” Rio said. He also suggested administrative fines of Rp250,000 for violators, arguing that such measures would be more effective than lengthy legal processes.
Balancing Public Health and Economic Stability
The debate now centers on how to balance consumer protection with economic stability. Business groups fear the regulation could slow recovery, while advocates believe the policy can safeguard health without harming businesses if applied fairly.
Rio stressed that property managers and corporations should share responsibility, with repeated violations leading to potential license suspensions or revocations.
Apindo continues to push for gradual implementation, emphasizing the need for synchronized policies. “What businesses need most in the current economy is certainty and policy alignment,” Anggana said.
At the same time, consumer advocates see an opportunity for Jakarta to lead. “If implemented properly, this regulation will protect the public while giving certainty to smokers. Jakarta could become a healthy city model with firm smoke-free policies,” Rio concluded.
Jakarta’s Path Toward a Balanced Smoke-Free Future
The proposed smoke-free zone policy has ignited strong reactions from both business and consumer groups. Hoteliers and restaurateurs worry about declining demand, while consumer advocates stress the importance of protecting citizens from secondhand smoke. The challenge for Jakarta lies in finding a balance between public health and economic resilience. With fair rules, effective outreach, and consistent enforcement, the city could set a national example for smoke-free living.
Source: finance.detik.com, koran-jakarta.com
Image: Julia Manga / Canva
