Customs Seizes 8.9 Million Illicit Cigarettes Worth Rp13.2 Billion

The Directorate General of Customs and Excise (DJBC) has successfully thwarted the circulation of millions of illicit cigarettes, saving the state from potential losses of billions of rupiah. In total, 8,944,800 illicit cigarette sticks were seized, with an estimated goods value of Rp13.28 billion and state losses prevented amounting to Rp8.66 billion. This figure comprises potential excise revenue of Rp6.67 billion, cigarette tax of Rp667.28 million, and value-added tax on tobacco products (PPN HT) of Rp1.32 billion. Director General of Customs and Excise, Lieutenant General (Ret.) Djaka Budhi Utama, stressed that eradicating illegal cigarettes is part of efforts to protect the public, maintain a healthy business climate, and secure state revenue. ‘This action against the circulation of illegal cigarettes is a form of protection for the public from non-compliant products, protection for business actors who obey the rules, and an effort to safeguard state revenue used to finance development and public services,’ he stated at a press conference at DJBC headquarters. The enforcement action originated from a tip-off regarding the suspected shipment of illegal excisable tobacco products using a truck transiting the Jakarta Customs surveillance area. Following an investigation and analysis, a joint team from Jakarta Customs and the Polda Metro Jaya Highway Patrol conducted an operation on Saturday afternoon at KM 35.8 of the Jakarta Outer Ring Road. During inspection, officers discovered 8,000,800 sticks of ‘SS’ brand illegal cigarettes without excise stamps, which were then seized and taken to the Jakarta Customs Office. The truck driver, identified as PY, and a shipping supervisor, identified as YK, were detained. According to information obtained from PY, the illegal cigarettes were shipped on the orders of HH, a goods controller in Pamekasan, destined for a warehouse on Jalan Kampung Kemeranggen, Taman Baru, Taktakan District, Serang City, Banten. The following day, a joint team from Customs and the Military Police (Puspom TNI) found an additional 944,000 sticks of illegal ‘SS’ and ‘41’ brand cigarettes without excise stamps stored in the warehouse, which were found to belong to AS. The successful enforcement action also contributed to sustaining the legal tobacco industry and safeguarding approximately 3,578 hand-rolled cigarette workers from potential job losses. The case has been elevated to the investigation stage. During the investigation, Customs is collaborating with the Criminal Investigation Directorate of Polda Metro Jaya. PY has been named a suspect, whilst investigations continue into several other parties suspected of links to the illicit cigarette distribution network. Djaka explained the illegal cigarettes originated from production centres in East Java and that Customs will trace the network back to the goods owner. Separately, Major General Yusri Nuryanto of the Military Police stated that a TNI member had been implicated. Yusri said the military had detained the individual and that further suspects were being pursued, warning that any involved personnel would face the heaviest sanctions, including dismissal.