Understanding GR 28/2024: Striking the Right Balance Between Compliance and Intellectual Property Protection in the F&B Sector

Indonesia has seen a concerning rise in diabetes cases over the years, with a prevalence rate of 10.9% in 2018. By 2020, over 10.8 million Indonesians were living with diabetes, and this number surged to 19.5 million by 2021. Projections estimate that it will reach 28.6 million by 2045. In response, the government has issued GR 28/2024, which grants authorities the power to limit sugar, salt, and fat (“SSF”) content in processed foods, mandates accurate nutritional labelling, and restricts the advertising of products exceeding SSF limits. The food and beverage industry must adapt to ensure compliance and promote public health.

Diabetes has become a major health concern in Indonesia, with prevalence rates steadily rising over the years. In 2018, Basic Health Research or Riset Kesehatan Dasar (“Riskesdas”) recorded a diabetes prevalence rate of 10.9%. In 2019, the International Diabetes Federation (IDF) estimated that 6.2% of the population was affected, and this figure held steady in 2020, equating to over 10.8 million people living with diabetes.¹ The situation worsened in 2021, with cases climbing to 19.5 million and projected to reach 28.6 million by 2045. ² In 2022, Riskesdas reported that Indonesia had 41,817 cases of type 1 diabetes, the highest in ASEAN. ³ This rise coincided with a surge in sugar consumption, which reached 3.4 million tons by the end of 2023, marking a decade-long high. Consequently, the prevalence of diabetes mellitus among adults grew from 10.9% in 2018 to 11.7% in 2023. ⁴

FnB Graph

Diabetes Prevalence in Indonesia
Source: Radio Republik Indonesia (RRI)

In response, the Indonesian government has issued GR 28/2024, which aims to combat non-communicable diseases and improve the national health system. One of the provisions in GR 28/2024 addresses limitations on SSF content in processed and ready-to-eat food products.

GR 28/2024 and Its Implications for the F&B Industry

GR 28/2024 underscores the Indonesian government’s commitment to tackling non-communicable diseases, particularly diabetes, by implementing stringent controls on SSF content in processed and ready-to-eat foods. This regulation aims to serve as a strategic tool in preventive health measures addressing the increasingly urgent public health issues.

Some key points of GR 28/2024 and its implications for the F&B industry include:

Establishment of Maximum SSF Limits
The Indonesian government will set maximum sugar, salt, and fat content limits in processed and ready-to-eat food products through GR 28/2024. ⁵ This means that food producers must adjust their products to comply with this regulation and future regulations.
Implementation of Accurate Nutritional Labelling
Producers, importers, and distributors are required to ensure that all processed and ready-to-eat food products meet the maximum sugar, salt, and fat content limits as stipulated in the regulation. In addition, they must include nutritional labels on the product packaging or in information media that clearly indicate the sugar, salt, and fat content. ⁵ These labels must be accurate, compliant with regulations, and applied to all product packaging to ensure transparency and consumer awareness.
Restrictions on Advertising, Promotion, and Sponsorship
GR 28/2024 prohibits advertising, promotion, and sponsorship of products that exceed the maximum SSF limits.⁶ Food manufacturers must understand that non-compliant products will face marketing restrictions. Advertisers and marketers need to adjust their marketing strategies to comply with the regulations, avoiding potential loss of market visibility.

Diabetes in Indonesia

Compliance with GR 28/2024 for Businesses and Intellectual Property Owners

For businesses in the F&B industry, compliance with this regulation involves not only adjusting their products but also effectively managing their intellectual property (“IP”).

Product and Label Adjustments: Accommodating SSF Limits
Through GR 28/2024, the Indonesian Government will set maximum sugar, salt, and fat limits in processed and ready-to-eat foods to improve public health and reduce the risk of non-communicable diseases like diabetes. This regulation involves comprehensive risk assessments and alignment with international standards to ensure consistency with global practices.The government has established a two-year grace period once the maximum SSL limits are officially set. ⁷ This transition provides businesses with ample time to adjust their products to comply with GR 28/2024. During this time, businesses are expected to begin reformulating their products to meet the specified SSF limits, which involves adjusting the SSF levels and thoroughly revising their product formulas to ensure optimal product quality. We believe that effective reformulation will strike the right balance between the obligation to comply with new regulations and the effort to preserve product characteristics known to consumers.As mentioned earlier, GR 28/2024 also mandates that producers include accurate nutritional labels on their product packaging. These labels must provide clear information on SSF content and adhere to the new regulations. In this regard, we believe that informative and regulatory-compliant labels will enable consumers to make healthier choices, ultimately contributing to better dietary habits.
Adjusting Marketing Strategies
In line with the key points of GR 28/2024, the government also regulates restrictions on advertising, promotion, and sponsorship for products exceeding maximum SSF limits. This means that businesses must adjust their marketing strategies to comply with the regulations. Innovation in packaging and label design is crucial to ensure compliance while remaining effective in product promotion. Non-compliance with these regulations could result in penalties, including written warnings, fines, temporary suspension of production activities, or even revocation of business licenses. ⁸The new packaging and labelling requirements under GR 28/2024 relate to health and regulatory compliance and are also closely connected to IP protection. Product trademarks and packaging designs, under laws such as Law Number 20 of 2016 concerning Trademarks and Geographical Indications, and Law Number 31 of 2000 concerning Industrial Designs, are protected IP.After the maximum SSF limits are set, there will be a two-year transition period before these SSF limits come into effect. During this time, businesses could adjust their brands, in particular their Intellectual Property Rights (e.g., packaging and label designs), to ensure that they not only comply with the SSF limitations but also that the new designs do not infringe on existing IP rights. Additionally, this period offers an opportunity for innovation within their IP portfolio. By continually innovating and protecting IP, businesses can strengthen their market position. Innovative packaging and labelling designs help meet new requirements and provide a competitive branding and product differentiation advantage.

Diabetes in Indonesia

GR 28/2024 represents a strategic measure to address the surge in diabetes cases in Indonesia by limiting SSF content in processed and ready-to-eat foods. This change demands that businesses in the F&B industry adjust their products, including labelling and marketing strategies. Compliance with this regulation, including adjustments to packaging designs and IP protection, is crucial to avoid penalties and enhance product quality.

For further information on how this regulation affects your business, and the compliance steps you need to take, contact us at ADCO Law.

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