East Java Customs Destroys Illegal Cigarettes Worth Rp19.6 Billion

The East Java I Regional Office of Customs has destroyed 13,227,800 sticks of illegal cigarettes seized during enforcement operations from January to early June 2024, with the total value of the goods reaching Rp19.64 billion.

The Head of the East Java I Customs Regional Office, Rusman Hadi, stated in Sidoarjo on Thursday that the destruction of these seized goods is a demonstration of the government’s commitment to suppressing the circulation of illegal cigarettes and safeguarding state revenue from the excise sector.

“This destruction serves as 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 agencies to suppress the circulation of illegal cigarettes in East Java,” said Ruslan.

During the event, held symbolically in the courtyard of Pasar Baru Porong, Sidoarjo, Rusman stated that illegal cigarettes not only harm state finances but also create unfair business competition for the tobacco industry that complies with legal regulations.

He emphasised that this enforcement action is estimated to have saved potential state losses of Rp12.8 billion in the excise revenue sector.

In the same event, the Head of the Sidoarjo BPJS Ketenagakerjaan Branch, Arie Fianto Syofian, explained that a portion of the Tobacco Excise Revenue Sharing Fund (DBHCHT), derived from official cigarette excise, is directed towards strengthening social security for vulnerable workers and labourers within the tobacco industry.

According to him, the synergy between the government, the Customs Regional Office, and BPJS Ketenagakerjaan ensures that the benefits of the DBHCHT can be felt directly by workers, thereby strengthening social protection.