Navigating the Evolving Landscape: Adapting to Indonesia's New Regulations on Sugar, Salt, and Fat Content in Processed Foods

The Indonesian government has recently introduced a new regulation, Government Regulation No. 28 of 2024 (GR 28), which aims to control the consumption of products high in sugar, salt, and fat (known as GGL) in the country. This regulation, which is an implementing regulation of the Health Omnibus Law, has significant implications for businesses in the food and beverage industry, who must now adapt to the new requirements to maintain compliance and competitiveness.

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Limits on GGL Content: A Comprehensive Regulatory Framework

GR 28 establishes clear limits on the maximum content of sugar, salt, and fat in processed food products, including pre-packaged and ready-to-eat items. This is a significant shift in the regulatory landscape, as the government seeks to address the growing prevalence of non-communicable diseases, such as hypertension and diabetes, which are often linked to the overconsumption of these nutrients. The regulation provides a comprehensive framework for controlling the production, importation, distribution, and advertising of products that exceed the established GGL limits.

Enforcement and Compliance: Navigating the Evolving Regulatory Landscape

While GR 28 outlines the general requirements and limitations, the specific details on how these restrictions will be enforced are yet to be determined. The regulation indicates that further regulations from the Ministry of Health will provide additional clarity on the implementation process, including the specific GGL content thresholds and the corresponding sanctions for non-compliance. As business actors in the food and beverage industry prepare to adapt to the new regulations, they must closely monitor the development of these upcoming guidelines to ensure they are able to maintain compliance and adapt their operations accordingly.

Advertising Restrictions: Promoting Healthier Choices

GR 28 also introduces restrictions on the advertising of food products that are high in GGL. These restrictions may include limitations on the timing, location, and target audience of such advertisements. The regulation suggests that the government is taking a proactive approach to shaping consumer behavior and encouraging the consumption of healthier food options. Business actors will need to carefully review and adjust their marketing strategies to align with the new advertising guidelines, ensuring they remain compliant while effectively reaching their target audience.

Taxation and Fiscal Measures: Incentivizing Healthier Choices

In addition to the direct regulatory requirements, GR 28 also indicates that the government may utilize fiscal measures, such as taxation, to control the circulation of products that are high in GGL. While the specific products and tax structures are not yet defined, this shift in the regulatory landscape suggests that the government is willing to employ economic levers to drive the consumption of healthier food options. Business actors must closely monitor the development of these fiscal policies and be prepared to adapt their pricing and product strategies accordingly.

Labeling and Front-of-Pack Labeling (FOPL): Empowering Informed Decisions

GR 28 mandates that food labels must now include the amounts of sugar, salt, and fat contained in the product. Additionally, the regulation indicates that a front-of-pack labeling (FOPL) system may be implemented, potentially following a traffic light method similar to that used in Singapore. This labeling requirement aims to provide consumers with clear and easily accessible information about the nutritional content of the products they are purchasing, empowering them to make more informed choices. Business actors must ensure that their product labeling is compliant with the new regulations and consider how FOPL may impact their packaging and marketing strategies.

Building a Healthier Future: Collaboration and Adaptation

As the Indonesian government continues to refine and implement the regulations outlined in GR 28, business actors in the food and beverage industry must be proactive in adapting their operations and strategies. This may involve reformulating products to meet the new GGL content limits, adjusting marketing and advertising campaigns, and exploring innovative ways to offer healthier options to consumers. By embracing these changes and collaborating with regulatory authorities, industry players can position themselves as leaders in the evolving landscape, contributing to a healthier future for the Indonesian population.