Indonesian Political, Business & Finance News

Customs Foils Circulation of 8.2 Million Illegal Cigarettes at Merak-Bakauheni

| Source: CNBC Translated from Indonesian | Legal
Customs Foils Circulation of 8.2 Million Illegal Cigarettes at Merak-Bakauheni
Image: CNBC

The Directorate General of Customs and Excise (Bea Cukai) has thwarted the distribution of 8,262,000 illegal cigarettes in two separate enforcement actions at the Merak-Bakauheni ferry port area on Thursday, 11 June 2026.

Director General of Customs and Excise, retired Lieutenant General Djaka Budhi Utama, stated that the enforcement demonstrates the agency’s commitment to protecting society and state revenue from the circulation of illicit excisable goods. “The circulation of illegal cigarettes not only harms the state in terms of revenue but also creates unfair business competition. Therefore, we will continue to strengthen supervision and enforcement,” he said on Friday (12/6/2026).

The operation began at 07:00 WIB when Merak Customs received information about a suspected shipment of illegal cigarettes passing through its jurisdiction. Following up on the tip, a joint team from Merak Customs and the Banten Regional Customs Office conducted ground surveillance and patrols in the Merak-Bakauheni ferry port area in Cilegon.

During the operation, officers stopped and inspected a Colt Diesel truck with registration number D80XXFM suspected of carrying illicit excisable goods. When questioned, the driver, identified by the initials JFR, and his assistant JER could not explain the cargo they were transporting. Upon inspection, officers discovered 182 cartons of machine-made kretek cigarettes (SKM) of the OK BOLD brand without the required excise stamps. The total goods seized amounted to 2,912,000 cigarettes.

After securing the first seizure, the team continued patrols and inspections of vehicles crossing from Bakauheni Port. Officers then stopped a Hino Fuso truck with registration number BM84XXDN that also raised suspicions. During further examination, the driver, identified by the initials RHMT, could not provide detailed information about the cargo. When the truck’s cargo hold was opened, officers found 535 cartons of machine-made white cigarettes (SPM) of the Double Happiness brand without excise stamps, hidden behind a load of animal feed. The number of illegal cigarettes seized from this truck totalled 5,350,000.

“From these two enforcement actions, Customs successfully seized a total of 8,262,000 illegal cigarettes. The entire haul is estimated to be worth Rp 12.68 billion, with potential state losses prevented amounting to Rp 7.9 billion, covering excise duty, cigarette tax, and Value Added Tax on Tobacco Products (PPN HT),” Djaka detailed.

He also emphasised that Customs will continue to enhance supervision of the circulation of illicit excisable goods, particularly along distribution routes susceptible to smuggling. “We invite all parties to jointly combat the circulation of illegal cigarettes. Compliance with excise regulations is an essential part of supporting a healthy business climate and safeguarding state revenue,” he asserted.

In every case handling process, Customs prioritises coordination and synergy with relevant law enforcement agencies. For this case, the Banten Regional Customs Office and Merak Customs will coordinate intensively with the Banten Regional Police, particularly through the supervisory coordinator function, as well as the Banten High Prosecutor’s Office and its ranks.

The case is suspected to involve violations of excise regulations as stipulated in Article 54 and/or Article 56 of Law Number 39 of 2007 concerning Excise. Currently, the Banten Regional Customs Office and Merak Customs are conducting an investigation with JFR named as a suspect, based on sufficient evidence that the individual engaged in unlawful acts, namely participating in approximately five sales of illegal cigarettes from areas in East Java and Central Java for subsequent transport to Sumatra.

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