Customs Seizes Millions of Illegal Cigarettes at Merak Port, Preventing Rp7.9 Billion in State Losses

The Banten Regional Office of Customs and Excise has successfully thwarted the distribution of 8,262,000 illegal cigarettes through a rigorous surveillance operation at the Merak-Bakauheni port on Thursday (12/6). The firm action was taken to protect state revenue and maintain a healthy business climate in the tobacco industry.

Director General of Customs and Excise, Letjen TNI (Purn.) Djaka Budhi Utama, stated that the enforcement demonstrates the agency’s commitment to protecting the public and state revenue from the circulation of illegal 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.

The operation began at 07.00 WIB when the Merak Customs Office received information about a suspected shipment of illegal cigarettes. Officers from Merak Customs and the Banten Regional Office conducted ground surveillance and patrols in the Merak-Bakauheni ferry port area in Cilegon City. During the patrol, officers stopped and inspected a suspicious Colt Diesel truck with license plate D80XXFM. The driver, identified as JFR, and his assistant, JER, could not explain the cargo. Upon inspection, officers discovered 182 cartons containing 2,912,000 machine-made kretek cigarettes of the OK BOLD brand, all without excise tax stamps.

Continuing their patrol, the team later stopped a Hino Fuso truck with license plate BM84XXDN. The driver, identified as RHMT, was also unable to provide a clear explanation for his cargo. When the truck’s compartment was opened, officers found 535 cartons of machine-made white cigarettes of the Double Happiness brand hidden behind animal feed. This second seizure amounted to 5,350,000 illegal cigarettes.

“From these two enforcement actions, Customs successfully seized a total of 8,262,000 illegal cigarettes. The total estimated value of the goods is Rp12.68 billion, with potential state losses prevented amounting to Rp7.9 billion, covering excise duties, cigarette taxes, and VAT on tobacco products,” Djaka detailed. He further emphasised that Customs will continue to intensify supervision of illegal excisable goods, particularly along distribution routes prone to smuggling.

“We invite all parties to jointly combat the circulation of illegal cigarettes. Compliance with excise regulations is crucial to supporting a fair business climate and safeguarding state revenue,” he asserted. In handling the case, Customs prioritises coordination and synergy with relevant law enforcement agencies. The Banten Regional Office and Merak Customs will coordinate intensively with the Banten Regional Police, particularly through the Supervision Coordinator function, as well as the Banten High Prosecutor’s Office and its ranks.

The case is suspected to involve violations of excise law as stipulated in Article 54 and/or Article 56 of Law Number 39 of 2007 concerning Excise. An investigation is currently underway with JFR named as a suspect, based on sufficient evidence indicating his involvement in approximately five instances of illegal cigarette sales from areas in East Java and Central Java, destined for Sumatra.