Corruption Commission Attributes Surge in Illegal Cigarettes to Customs Officials' Bribery Case
The Indonesian Corruption Eradication Commission (KPK) has stated that an alleged bribery case involving importation of goods by officials at the Directorate General of Customs and Excise has contributed to the widespread circulation of illegal cigarettes in Indonesia.
“Is this also related to the illegal cigarettes that are currently rampant? One of the factors. Yes, that’s correct,” said Asep Guntur Rahayu, Deputy for Prosecution and Enforcement at the KPK, at KPK headquarters in South Jakarta on Friday (27 February).
Asep explained that illegal cigarettes flourish due to excise fraud. This practice, according to Asep, has caused state losses.
“The scheme works like this. Some have counterfeit excise stamps or falsified ones. There’s also a method where they use excise marks that shouldn’t be used,” Asep explained.
“So the cheaper excise is purchased in large quantities by these unscrupulous parties. Then it’s used for goods that actually require higher excise duties. This results in a shortfall in state revenue because the excise doesn’t match,” he added.
Furthermore, Asep also stated that the KPK will summon cigarette producers involved in the case.
“Will cigarette producers be called in? Of course. Yes. Based on statements from these individuals. From anyone involved. Which companies, whoever they are,” he said.
In this case, the KPK has named seven suspects. They are the former Director of Investigation & Prosecution at the Directorate General of Customs and Excise for the period 2024–January 2026, Rizal; Head of Intelligence Sub-directorate for Prosecution and Investigation at the Directorate General of Customs and Excise (Kasubdit Intel P2 DJBC), Sisprian Subiaksono.
Additionally, the Head of Intelligence Section at the Directorate General of Customs and Excise (Kasi Intel DJBC), Orlando; Head of the Import Documentation Team at PT BR, Andri; owner of PT Blueray, John Field; and Operations Manager at PT BR, Dedy Kurniawan.
Head of the Excise Intelligence Section in the Prosecution and Investigation Directorate, Budiman Bayu Prasojo, was only arrested and named as a suspect on Thursday (26 February).
The suspects have been remanded in the KPK State Detention Centre (Rutan).
For their alleged actions, Rizal, Sisprian, and Orlando face charges under Article 12 paragraphs (a) and (b) of the Anti-Corruption Law (UU Tipikor) as well as Articles 605 paragraph 2 and 606 paragraph 2 in conjunction with Articles 20 and 21 of the Criminal Code (KUHP).
They also face charges under Article 12B of the Anti-Corruption Law in conjunction with Articles 20 and 21 of the Criminal Code. Meanwhile, John Field, Andry, and Dedy Kurniawan, as bribe givers, face charges under Articles 605 paragraphs 1(a) and (b) and 606 paragraph 1 of the Criminal Code.