Indonesian Political, Business & Finance News

Crackdown on Illegal Excise Goods in Morowali: Customs Prioritises Administrative Sanctions

| | Source: REPUBLIKA Translated from Indonesian | Regulation
Crackdown on Illegal Excise Goods in Morowali: Customs Prioritises Administrative Sanctions
Image: REPUBLIKA

In an operation to eradicate the circulation of illegal excise goods (BKC), Morowali Customs seized 57,000 illegal cigarettes and 4 litres of illegal alcoholic beverages in the Sambalagi area, Bungku Pesisir, Morowali Regency, on Wednesday (15/4/2026).

The estimated value of the illegal BKC we acted upon is Rp150 million, with a potential state loss of Rp76 million,” stated the Head of Morowali Customs Office, Muhariadi Angkat, in a statement on Tuesday (21/4/2026).

As a follow-up to the enforcement against illegal BKC, Muhariadi explained that the traders selling illegal BKC are subject to administrative sanctions in accordance with applicable regulations. “The sanction is a fine of three times the excise value, known as ultimum remedium. The amount is Rp230 million,” he said.

He added that throughout 2026, Morowali Customs has collected Rp1.94 billion in fines from excise administrative sanctions.

Ultimum remedium, one of the principles in Indonesian criminal law, states that criminal law should be used as a last resort in law enforcement, so in imposing sanctions on a case, it can go through administrative or civil sanction routes.

If both routes are unable to resolve the legal violation that occurs, then criminal sanctions can be considered as the last weapon.

The ultimum remedium legal principle can be implemented for perpetrators of crimes who violate certain articles regulated in the Excise Law. In addition to giving a deterrent effect to the perpetrators, the state’s rights that should be deposited are also fulfilled.

The implementation regulation of ultimum remedium in the investigation stage of alleged violations as referred to in Article 40B paragraph (6) of the Excise Law was newly applied and promulgated on 30 December 2022 through Minister of Finance Regulation number 237/PMK.04/2022 concerning Investigation of Alleged Violations in the Excise Sector.

View JSON | Print