Cilacap Customs Destroys Rp1.3 Billion in Illegal Cigarettes

The Cilacap Customs and Excise Office has destroyed State-Owned Goods (BMMN) resulting from enforcement actions, comprising 847,064 illegal cigarettes valued at Rp1.307 billion, as a commitment to eradicating the circulation of illicit excisable goods and protecting state revenue. The symbolic destruction of the seized goods was carried out by burning in the courtyard of the Cilacap Customs Office, Central Java, on Tuesday, witnessed by representatives from the Prosecutor’s Office, the Police, the State Assets and Auction Service Office (KPKNL), and other relevant agencies. The remainder was destroyed at PT Solusi Bangun Indonesia in Cilacap.

Head of the Cilacap Type Madya Pabean C Customs Surveillance and Service Office (KPPBC TMP C), Shinta Dewi Arini, stated that the value of the destroyed goods reached Rp1,307,496,449, with potential state losses successfully safeguarded amounting to Rp852,007,814. She noted that this activity was the first destruction carried out by Cilacap Customs in 2026, and all destroyed goods originated from various illegal cigarette enforcement operations throughout 2025, involving diverse methods ranging from shipments via expedition services to distribution through wholesalers and small retail shops.

"We are committed to continuously strengthening supervision and the eradication of illegal cigarettes firmly and comprehensively. This programme aligns with efforts to maintain the stability of state revenue and create a healthy and fair business climate in the excise sector," she said. Shinta emphasised that the circulation of illegal cigarettes not only reduces state revenue but also harms the tobacco products industry, which has fulfilled its excise payment obligations, thereby creating unfair business competition.

Meanwhile, Head of the Internal Compliance and Counselling Section of KPPBC TMP C Cilacap, M Takhrudin, explained that the destroyed goods consisted of 847,064 sticks of illegal hand-rolled kretek cigarettes (SKT) and machine-made kretek cigarettes (SKM), with a value of approximately Rp1.3 billion. The potential state loss of around Rp852 million stemmed from excise duty, cigarette tax, and VAT. "The circulation of illegal cigarettes not only affects the macroeconomy but also the community’s economy because it creates unfair business competition. Law-abiding producers will be disadvantaged by the circulation of illegal cigarettes," he said. Takhrudin added that the destroyed illegal cigarettes did not originate from producers within the Cilacap Customs working area but were predominantly products from outside the region. His office also continues to provide guidance to business operators to comply with excise regulations and urges the public to report any indications of illegal cigarette circulation to Customs.