Indonesian Political, Business & Finance News

Customs Foils Shipment of 8.96 Million Illegal Cigarettes at Tanjung Priok Port

| | Source: REPUBLIKA Translated from Indonesian | Economy
Customs Foils Shipment of 8.96 Million Illegal Cigarettes at Tanjung Priok Port
Image: REPUBLIKA

Customs and Excise officers at Tanjung Priok, together with the Directorate of Enforcement and Investigation, have thwarted the shipment of 8.96 million illegal cigarettes that lacked excise stamps. The enforcement action targeted two containers during supervision of inter-regional and inter-island goods traffic at the Tanjung Priok Port area.

The operation began with a tip-off from the public regarding the suspected shipment of illegal cigarettes from East Java to Sumatra via Tanjung Priok. Following up on the information, officers conducted surveillance and scanned containers at the port on Friday, 7 August 2026.

Based on analysis and intelligence gathering, officers identified two containers suspected of transporting illegal cigarettes, which had been declared as containing pipes and light steel. Both containers were secured for further inspection at a temporary storage facility.

To verify the contents, officers used a container scanner. The image analysis revealed patterns resembling neatly arranged cartons, indicating the presence of illegal cigarettes. Based on these indications, both containers were detained and a formal intelligence report was issued by Tanjung Priok Customs.

A physical inspection conducted on Monday, 10 August 2026, uncovered excisable tobacco products in the form of machine-made kretek cigarettes without excise stamps, totalling 8.96 million sticks across several brands. The goods are estimated to be worth Rp 13.305 billion, with potential state losses reaching Rp 8.669 billion. This figure comprises potential excise revenue of Rp 6.684 billion, cigarette tax of Rp 668.44 million, and value-added tax on tobacco products of Rp 1.317 billion.

Further investigation revealed that the two containers were shipped from East Java to Tanjung Priok using cargo trains, with plans to continue their journey to Sumatra by sea.

Director General of Customs and Excise, Letjen TNI (Purn.) Djaka Budhi Utama, stated that supervision of the circulation of illegal excisable goods is part of Customs’ efforts to ensure compliance with excise regulations while protecting the public and state revenue.

‘Customs continues to strengthen supervision of the circulation of illegal excisable goods, including on inter-regional and inter-island distribution routes. This enforcement action demonstrates that supervision is carried out continuously based on risk analysis and information received from the public,’ he said.

He added that eradicating the circulation of illegal cigarettes requires support and synergy from various parties, including the public. ‘We encourage the public to continue playing an active role by providing information if they suspect the circulation of illegal excisable goods. Synergy between Customs, the public, and other stakeholders is essential to create orderly and fair trade,’ he said.

Following the discovery, Tanjung Priok Customs secured all evidence for further processing in accordance with statutory regulations. The investigation will be conducted in coordination with the Criminal Investigation Supervisory Agency of the Indonesian National Police. Customs also urged the public not to buy, store, or distribute illegal tobacco products, warning that the circulation of cigarettes without excise stamps not only harms state revenue but also creates unfair business competition for compliant business operators.

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