{
    "success": true,
    "data": {
        "id": 1682689,
        "msgid": "illegal-cigarettes-still-circulating-small-shops-selling-them-on-the-sly-1776387051",
        "date": "2026-04-17 07:20:09",
        "title": "Illegal Cigarettes Still Circulating, Small Shops Selling Them on the Sly",
        "author": "",
        "source": "CNBC",
        "tags": "",
        "topic": "Regulation",
        "summary": "Illegal cigarettes continue to be sold discreetly in small neighbourhood shops across regions like Tangerang, Jakarta, and Bekasi, with consumers citing lower prices and similar taste as reasons for preference over legal options. The Indonesian government, led by Finance Minister Purbaya Yudhi Sadewa, is intensifying efforts to combat the issue by collaborating with the Coordinating Minister for Political and Security Affairs to dismantle backing networks and offering a legalisation pathway for producers by May 2026 to boost state revenues. Failure to comply will result in factory closures, with ongoing discussions in Parliament to formalise the policy.",
        "content": "<p>Illegal cigarettes are still circulating in society in several\nregions. Based on consumer admissions, these illegal cigarettes can be\nfound in grocery shops.<\/p>\n<p>Donny (not his real name) admits to being a consumer of illegal\ncigarettes branded BONTE to this day.<\/p>\n<p>According to his statement to CNBC Indonesia, around his residence in\nthe Daru area, Tangerang Regency, Banten, there are three grocery shops\nselling BONTE cigarettes.<\/p>\n<p>\u201cThere are 3 shops that sell it. Easy to buy, sometimes I buy from\ndifferent shops. As far as I remember, 3 different shops always have\nstock,\u201d he said to CNBC Indonesia on Thursday (16\/4\/2028).<\/p>\n<p>He usually buys BONTE filter cigarettes for Rp13,000 per pack of 20.\nThis price is much cheaper compared to filter cigarettes with official\nexcise labels on the market. For comparison, filter cigarettes with\nofficial excise cost Rp12,000 per pack of 12 sticks.<\/p>\n<p>Initially, said Donny, he smoked his neighbour\u2019s cigarettes. It\nturned out those cigarettes were illegal branded BONTE. When he tried\nthem and found they suited him.<\/p>\n<p>However, what made him continue using illegal cigarettes was two\nreasons: because they are cheap and have a taste no different from legal\ncigarettes.<\/p>\n<p>\u201cI continued consuming these illegal cigarettes because they are\ncheap, usually buying legal cigarettes a pack of 16 sticks for 28\nthousand. Now switching to illegal ones is more economical and can cut\nthe smoking budget,\u201d said Donny.<\/p>\n<p>\u201cBesides, the taste is no different from the legal filter cigarettes\nI used to consume,\u201d he added.<\/p>\n<p>The second source, named Erwin (not his real name), also said he\ncould find illegal cigarettes in grocery shops in his area in Meruya,\nWest Jakarta.<\/p>\n<p>Erwin admits to being a customer of SMITH brand cigarettes, bought\nfor Rp15,000 per pack. However, he last bought those cigarettes about\nfour months ago.<\/p>\n<p>\u201cIt\u2019s been four months since I bought them. Now they\u2019re gone,\nprobably because they\u2019re afraid of raids,\u201d Erwin said to CNBC Indonesia\non Thursday (16\/4\/2026).<\/p>\n<p>Meanwhile, according to CNBC Indonesia\u2019s investigation of four\ngrocery shops in the Pondok Gede area, Bekasi, no illegal cigarettes\nbranded SMITH, BONTE, or Manchester were found, which are often raided\nby the Directorate General of Customs and Excise (DJBC).<\/p>\n<p>One grocery shop owner, Minah (not her real name), said she does not\ndare to sell illegal cigarettes like the brands mentioned above, even\nthough there is potential for greater profit.<\/p>\n<p>\u201cIllegal ones like that, I don\u2019t dare sell. They exist in the\noutskirts of villages,\u201d she said to CNBC Indonesia on Thursday\n(16\/4\/2026).<\/p>\n<p>Nevertheless, several grocery shops visited by CNBC Indonesia sell\ncheap cigarettes like SAGA, ARMOUR, FERRO, SERGIO, and SCORPION at\nrelatively low prices ranging from Rp12,000 to Rp16,000 per pack of 16\nsticks.<\/p>\n<p>The CNBC Indonesia team tried to confirm with DJBC whether those\nbrands are legal or illegal, but as of this report, no response has been\nreceived.<\/p>\n<p>Government Not Standing Idly By<\/p>\n<p>The government is not standing idly by in eradicating the circulation\nof illegal cigarettes. Finance Minister Purbaya Yudhi Sadewa said he has\nteamed up with the Coordinating Minister for Political and Security\nAffairs Djamari Chaniago to combat the backers of illegal cigarette\nproducers and distributors.<\/p>\n<p>He said cooperation with the Coordinating Minister for Political and\nSecurity Affairs in cracking down on illegal cigarette actors is\nimportant because he received information that they have backers, making\nit easy for them to operate so far.<\/p>\n<p>\u201cIf according to people in the field, there is always backing,\u201d said\nPurbaya, quoted on Thursday (16\/4\/2026).<\/p>\n<p>He also gave a deadline for illegal cigarette producers to switch to\nlegal by the latest May 2026. This target was set by Purbaya to boost\nstate revenues.<\/p>\n<p>\u201cClearly, we want May at the latest to be running, so that revenue\ncomes to us,\u201d he explained.<\/p>\n<p>Purbaya revealed that the transition scheme can be done simply by\npaying a certain type of excise. Thus, cigarette producers can comply\nwith excise regulations.<\/p>\n<p>If illegal cigarette entrepreneurs do not comply, Purbaya said he\nwill not hesitate to close illegal cigarette factories if they do not\nswitch to the legal market.<\/p>\n<p>\u201cI can really ban illegal cigarettes, I will close them for real\nbecause we give them a chance to play in the legal market. If they don\u2019t\nwant to, we close them,\u201d he emphasised.<\/p>\n<p>In line with this, Purbaya said the legalisation process for illegal\ncigarettes is being discussed with the DPR. Purbaya hopes this policy\ncan be accepted by the DPR and soon implemented by the government.<\/p>\n<p>\u201cSoon to discuss with the DPR how best, but the proposal is already\ndone. Hopefully it can be accepted by the DPR, then we implement it,\u201d he\nsaid.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/illegal-cigarettes-still-circulating-small-shops-selling-them-on-the-sly-1776387051",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
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