East Java Customs Destroys 13 Million Illegal Cigarettes Worth Billions of Rupiah

The East Java I Regional Office of Customs and Excise, alongside the East Java Provincial Government and various stakeholders, destroyed 13,227,800 illegal cigarettes on Thursday (11/6). The illegal cigarettes, seized during enforcement operations from 1 January to early June 2026, were symbolically destroyed in the yard of Pasar Baru Porong in Sidoarjo. The destroyed excisable goods are estimated to be worth Rp19.64 billion, whilst the potential state losses successfully recovered reached Rp12.8 billion. Rusman Hadi, Head of the East Java I Customs Regional Office, stated that the destruction of confiscated goods demonstrates the government’s commitment to suppressing the circulation of illegal cigarettes while safeguarding state revenue from the excise sector. According to Rusman Hadi, illegal cigarettes not only harm state finances but also create unfair business competition for the compliant tobacco industry. “This destruction is tangible proof that supervision of the circulation of illegal excisable goods continues to be strengthened. We will continue to synergise with local governments and law enforcement officials to suppress the circulation of illegal cigarettes in East Java,” said Rusman Hadi. East Java Regional Secretary Adhy Karyono affirmed that the Tobacco Products Excise Revenue Sharing Fund (DBHCHT), derived from excise receipts, has provided direct benefits to the community through various programmes, including social protection for tobacco sector workers. He noted that success in eradicating illegal cigarettes supports the optimisation of state revenue, which in turn returns to the community in the form of development and welfare programmes. “Every rupiah of excise revenue saved will return to the community through various government programmes. Therefore, the effort to eradicate illegal cigarettes must be a shared responsibility,” said Adhy. At the same event, Head of the Sidoarjo BPJS Employment Branch, Arie Fianto Syofian, explained that a portion of the DBHCHT utilisation is directed towards strengthening employment social security for vulnerable workers and tobacco industry labourers. He cited beneficiaries of the DBHCHT direct cash assistance from PT Gudang Garam in Sidoarjo, namely Diega Fatrian and Ramadhani Ardiansyah, who have felt the impact of the programme. “The synergy between the government, Customs, and BPJS Employment ensures that the benefits of DBHCHT can be directly felt by workers so that their social protection becomes stronger,” said Arie. Also attending the activity was Head of the East Java Civil Service Police Unit, Andik Fadjar Tjahjono, who affirmed the local government’s support in supervising and enforcing the law against the circulation of illegal cigarettes. The destruction of millions of illegal cigarettes is expected to send a strong message to business operators and the public that the circulation of excisable goods without official excise bands will continue to be prosecuted in order to safeguard state revenue and create a healthy business climate. It was deliberately carried out in a market area as a form of public outreach regarding the seriousness of the illegal cigarette eradication effort. The illegal cigarettes were ultimately destroyed at PT Putra Restu Ibu Abadi (PRIA) in Jetis, Mojokerto, where ten trucks brought the contraband to the factory to be incinerated using four incinerator machines.