Customs Foils Circulation of 8.9 Million Illegal Cigarettes, Saving Rp 8.6 Billion in State Revenue

Indonesia’s Customs and Excise (Bea Cukai) has reaffirmed its commitment to eradicating the circulation of illegal cigarettes. Through an operation conducted by Jakarta Customs, together with the Jakarta and Banten Regional Offices, officers successfully thwarted the distribution of 8,944,800 illicit cigarettes lacking excise stamps, with potential state losses amounting to Rp 8.66 billion. The enforcement action originated from a public tip-off regarding the suspected transport of illicit excisable tobacco products using a truck passing through Jakarta Customs’ surveillance area. Following in-depth analysis, a joint team from Jakarta Customs and the Metro Jaya Police Highway Patrol conducted an enforcement operation on Saturday (6/6/2026) at 15.15 WIB on the Jakarta Outer Ring Road at KM 35.8. Upon inspection, officers discovered 8,000,800 illegal cigarettes of the SS brand without excise stamps, which were then seized and taken to the Jakarta Customs Office for further examination. Also detained were PY, the truck driver, and YK, the shipment supervisor. Based on PY’s statement, the illegal cigarettes were dispatched on the orders of HH, the controller of the goods in Pamekasan, bound for a warehouse on Jalan Kampung Kemeranggen, Taman Baru, Taktakan District, Serang City, Banten. On Sunday (7/6/2026), a joint team from Customs and the Military Police Center conducted a follow-up operation and found an additional 944,000 illegal cigarettes of the SS and 41 brands without excise stamps stored in the warehouse. These cigarettes belonged to AS. Overall, the total quantity of goods seized reached 8,944,800 illegal cigarette sticks, with an estimated goods value of Rp 13.28 billion and potential state losses saved amounting to Rp 8.66 billion. This value comprises potential excise revenue of Rp 6.67 billion, cigarette tax of Rp 667.28 million, and value-added tax on tobacco products of Rp 1.32 billion. The Director General of Customs and Excise, Lieutenant General (Ret.) Djaka Budhi Utama, asserted that eradicating illegal cigarettes is part of efforts to protect the public, maintain a healthy business climate, and secure state revenue. He stated that enforcement against the circulation of illegal cigarettes represents a form of protection for the public from non-compliant products, for business actors who abide by the rules, and an effort to safeguard state revenue used to finance development and public services. The successful crackdown on illegal cigarettes also contributes to sustaining the legal tobacco industry and saves approximately 3,578 hand-rolled cigarette workers from potential job losses. According to Djaka, the circulation of illegal cigarettes creates unfair business competition because legal businesses have fulfilled their excise payment obligations and other statutory provisions. Consequently, Customs will continue to strengthen supervision and enforcement through synergy with law enforcement agencies and public support. The case has been escalated to the investigation stage based on a Commencement of Investigation Order dated 8 June 2026. During the investigation, Customs is collaborating with the Supervisory Coordinator for Civil Servant Investigators of the Metro Jaya Police Special Criminal Investigation Directorate to ensure the investigation proceeds in accordance with applicable regulations. Currently, PY has been named as a suspect, while further investigation and examination are still being conducted on several other parties suspected of having links to the illegal cigarette distribution network.