Enforcement Against Illegal Cigarettes Must Not Stop at Retailers
Jakarta Customs has seized approximately 59.8 million sticks of illegal cigarettes throughout 2026, with an estimated potential loss to the state of Rp46.79 billion. Enforcement against the circulation of illegal cigarettes is deemed necessary to trace back to producers, distributors, and those profiting from the business.
Abdullah, a member of Commission III of the Indonesian House of Representatives (DPR RI), stated that the circulation of illegal cigarettes impacts state revenue because these goods circulate without fulfilling excise obligations. “As a result, it is not only the state that suffers, but many parties within the legal tobacco industry supply chain are also disadvantaged,” Abdullah said in Jakarta on Thursday (10/9/2026).
Abdullah supports the enforcement actions taken by Jakarta Customs against the circulation of illegal cigarettes. “Therefore, the eradication must be intensified,” he added.
According to Abdullah, enforcement needs to trace back to the producers and financiers who benefit from the circulation of illegal cigarettes. The flow of funds from these activities also needs to be investigated to identify potential links to other illegal activities.
“Comprehensive law enforcement is essential to protect the interests of the public, compliant business actors, and the state,” Abdullah emphasised.
The Deputy Chairman of Commission III, Dede Indra Permana Soediro, stated that the enforcement of illegal excisable goods by the Jakarta Regional Customs Office is directly related to efforts to safeguard state revenue. “We appreciate the Regional Head for assisting in maintaining state revenue,” Dede said at the Jakarta Customs Regional Office in Kemayoran on Wednesday (9/9/2026).
Syarifuddin Sudding, another member of Commission III, stated that the circulation of illegal cigarettes must be addressed through law enforcement targeting the entire distribution chain. “The circulation of illegal cigarettes does not only result in the loss of state revenue—the potential loss is indeed very large—but it also concerns public health issues and unfair business competition,” Sudding explained.
Sudding noted that untaxed cigarettes are still being found in various regions, particularly in industrial areas. Therefore, enforcement must target those playing a role in the supply chain. “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,” Sudding asserted.
According to Sudding, investigations into large distributors are also necessary to ensure that enforcement is not limited to the lower levels of the chain.
Meanwhile, the Head of the Jakarta Customs Regional Office, Hendri Darnadi, stated that his office aims to conduct enforcement reaching the ultimate beneficiaries of the illegal cigarette trade. “Our commitment is to pursue this to the very end to create a deterrent effect. We will pursue it right up to the ultimate beneficiaries,” said Hendari.
According to Hendri, Customs offices in various regions share the same goal in eradicating illegal cigarettes, even though regional characteristics and local conditions may influence the patterns and speed of enforcement.