Indonesian Political, Business & Finance News

Authorities Dismantle Distribution of 6.5 Million Illegal Cigarettes in Banyuwangi

| | Source: REPUBLIKA Translated from Indonesian | Regulation
Authorities Dismantle Distribution of 6.5 Million Illegal Cigarettes in Banyuwangi
Image: REPUBLIKA

BANYUWANGI — Inter-agency cooperation has dismantled the distribution of 6.5 million illegal cigarettes without excise stamps valued at Rp 10 billion in Banyuwangi Regency on Thursday (12 March 2026).

“This enforcement action is part of a Task Force operation to prevent and suppress goods subject to excise tax to reduce illegal cigarette circulation in the Banyuwangi region,” said Latif Helmi, Head of the Banyuwangi Customs Office, in a statement on Tuesday (17 March 2026).

In the enforcement action, the Banyuwangi Customs Office collaborated with the Banyuwangi State Prosecutor’s Office, the Banyuwangi Naval Base, and the Banyuwangi Police Resort to apprehend four suspects.

The suspects, with initials ES (38), M (41), DAM (30), and M (41), were caught transporting cigarettes without excise stamps using a truck from Madura heading to Bali.

The four agencies held a press conference to address the criminal investigation proceedings in the customs sector on Monday (16 March 2026) at the Banyuwangi Prosecutor’s Office. The Banyuwangi Customs Office has conducted investigations as a follow-up to the enforcement action.

Latif explained the chronology of the enforcement operation. According to him, it began with public information regarding illegal cigarette shipments passing through Ketapang Port.

“Banyuwangi Customs officers then conducted sweeps from Tanjung Wangi Port to Farly Petrol Station, Kalipuro District, and at 08.40 WIB located a vehicle matching the description from the information,” he explained.

After inspection, illegal cigarettes were found in the cargo, so the suspects and evidence were brought to the Banyuwangi Customs Office for further examination.

The enforcement action yielded evidence comprising 6,585,560 illegal cigarettes with a value of approximately Rp 10,027,492,600, with potential state losses reaching Rp 5,061,589,360.

Based on the investigation, the cigarettes originated from a person with initial H in Madura and were planned to be sent to I and A in Bali, both currently listed on the Most Wanted List (DPO).

The suspects are alleged to have violated Article 54 of Law Number 11 of 1995 concerning Excise Duties as amended by Law Number 39 of 2007, facing imprisonment sentences of 1 to 5 years and/or fines of 2 to 10 times the excise duty that should have been paid. The case file has been declared complete (P-21) by the Banyuwangi State Prosecutor’s Office.

Latif stated that this enforcement action represents the genuine synergy of the Banyuwangi Customs Office with other agencies and community support in efforts to eradicate illegal cigarette circulation that can harm the state and negatively impact the economy.

“The Banyuwangi Customs Office is committed to continuing professional law enforcement to protect the public and safeguard state revenue from the customs sector,” Latif asserted.

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