Indonesian Political, Business & Finance News

DPR Members Support Customs in Strengthening Crackdown on Illegal Cigarettes

| Source: ANTARA_ID Translated from Indonesian | Economy
DPR Members Support Customs in Strengthening Crackdown on Illegal Cigarettes
Image: ANTARA_ID

Jakarta (ANTARA) - Abdullah, a member of Commission III of the Indonesian House of Representatives (DPR RI), supports Customs in strengthening enforcement against illegal cigarettes, which have depleted potential state revenue that should otherwise support various development programmes and public interests.

He stated that the circulation of illegal cigarettes has created unfair business competition, as legal businesses must fulfil excise obligations and various regulations, while illegal actors evade these duties.

“As a result, it is not only the state that suffers, but many parties within the cigarette industry supply chain who operate their businesses legally,” Abdullah said in a statement in Jakarta on Friday.

To this end, he supports the enforcement actions taken by Customs in Jakarta, which were highly significant in 2026, involving approximately 59.8 million sticks with an estimated potential loss to the state of around Rp46.79 billion.

“Therefore, the eradication must be intensified,” he added.

Enforcement should not stop at retailers or distributors but must be traced back to the producers and financiers. He noted that the money flow from the illegal cigarette business also needs to be investigated to determine if the proceeds are being used to fund other illegal activities.

“This comprehensive law enforcement is essential to protect the interests of the public, compliant businesses, and the state,” said Abdullah.

Deputy Chairman of Commission III DPR RI, Dede Indra Permana Soediro, also stated that the performance of the Jakarta Customs Regional Office in enforcing actions against illegal excisable goods has helped maintain state revenue.

“We appreciate the Regional Head for assisting in state revenue collection,” Dede said at the Jakarta Customs Regional Office in Kemayoran on Wednesday (9/9).

Similarly, Commission III member Syarifuddin Sudding noted that illegal cigarettes have long been a focus for Commission III, particularly regarding law enforcement and the synergy between law enforcement agencies and Customs.

According to him, the impact of illegal cigarettes is not limited to the loss of potential state revenue, but also poses risks to public health and creates unfair competition for industries that comply with excise obligations.

“The circulation of illegal cigarettes does not only result in lost state revenue—the potential loss to the state is indeed very large. However, it also concerns public health issues and unfair business competition,” he said.

He revealed that the circulation of untaxed cigarettes is still found in various regions, particularly in industrial areas. Therefore, law enforcement against excise violations must be carried out comprehensively.

“If necessary, we want to go further, not just at the retailer level but also to the producers. The producers who benefit from these illegal cigarettes must be held legally accountable,” he asserted.

To this end, Sudding emphasised that enforcement should be directed at large distributors who play a role in the illegal cigarette supply chain, ensuring that eradication does not merely break the chain at the lower levels.

He noted that the enforcement performance by the Jakarta Customs Regional Office is part of a broader effort to monitor various commodities that have the potential to harm the state.

“I believe this is an extraordinary achievement, and it is not limited to illegal cigarettes; there are many other commodities that must also be subject to enforcement,” he explained.

Meanwhile, the Head of the Jakarta Customs Regional Office, Hendri Darnadi, reaffirmed his commitment to pursuing producers and distributors.

“Our commitment is to pursue them to the end to create a deterrent effect. We will pursue them right up to the ultimate beneficiaries. We hope this becomes a new template for the enforcement or investigation process of illegal cigarettes,” said Hendri.

He added that the spirit of eradicating illegal cigarettes is a shared goal among all Customs divisions across various regions.

He stated that every region has different characteristics and strategic environments, meaning that the patterns and speed of enforcement can be adjusted to the specific conditions of each area.

“Customs, wherever it may be, shares the same spirit. Much like a multinational company, we have what is called a congruent goal—the same and aligned objectives. I am certain that colleagues outside of Jakarta share this same spirit. Different speeds do not mean different spirits,” he concluded.

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