Finance Minister Purbaya: Crackdown on Illegal Cigarettes Up 26.7 Percent

The government is tightening customs and excise oversight to close potential state revenue leakages, including from the circulation of illegal cigarettes and prohibited goods. Finance Minister Purbaya Yudhi Sadewa explained that strict enforcement against duty-free cigarettes will continue to be strengthened. This aligns with efforts to increase compliance and safeguard state revenues. “If it’s illegal, we shut it down. We won’t allow it,” Purbaya stated during the APBN KiTa Media Briefing at the Ministry of Finance in Central Jakarta on Tuesday (5/5/2026). Data shows that enforcement against illegal cigarettes has increased by 26.7 percent to 3,851 cases. The amount of evidence seized has also surged to 422 million sticks, a 66.4 percent rise compared to the previous period. In addition, enforcement against narcotics has shown an increase, with 325 cases and evidence amounting to around 1.27 tons. The government is also preparing policies to draw illegal cigarette business actors into the legal system through more structured regulatory schemes. According to Purbaya, this step is expected not only to suppress the circulation of illegal goods but also to expand the state revenue base. He emphasised that oversight will be conducted more strictly and integrally, including opening reporting channels for the public. “We follow up on all reports. We don’t ignore any,” he said. With the strengthening of enforcement, he added, the government hopes to curb revenue leakages. This will simultaneously create a fairer and healthier business climate.