House of Representatives Urges Customs to Eradicate Illegal Cigarette Circulation
Commission III of the Indonesian House of Representatives (DPR RI) is pushing for enforcement against the circulation of illegal cigarettes to extend beyond the retail level, targeting large producers and distributors who benefit from the illegal trade of excisable goods.
Abdullah, a member of Commission III, stated that illegal cigarettes have depleted potential state revenue that could otherwise support various development programmes and public interests. Furthermore, the circulation of illegal cigarettes creates 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 legal tobacco industry supply chain are also disadvantaged,” Abdullah said in a statement on Friday.
Abdullah expressed support for the enforcement actions taken by Customs against illegal cigarettes in Jakarta. Records show that by 2026, approximately 59.8 million sticks have been intercepted, with an estimated potential loss to the state of around Rp46.79 billion.
However, Abdullah noted that the most important aspect is that enforcement must not stop at retailers or distributors but must be traced back to the producers and financiers. He added that the money flow from the illegal cigarette business needs to be investigated to determine if the proceeds are being used to fund other illegal activities.
“Comprehensive law enforcement is vital to protect the interests of the public, compliant businesses, and the state,” he said.
Similarly, Commission III member Syarifuddin Sudding noted that illegal cigarettes have long been a concern for the Commission, particularly regarding law enforcement and the synergy between law enforcement agencies and Customs.
He stated that the impact of illegal cigarettes involves more than just lost state revenue; it also poses public health risks and creates unfair competition for industries that comply with excise obligations.
“The circulation of illegal cigarettes does not only result in lost state revenue—though the potential loss is significant—but it also concerns public health and unfair business competition,” he remarked.
Sudding revealed that untaxed cigarettes are still being found in various regions, particularly in industrial areas. Therefore, law enforcement against excise violations must be thorough.
“If necessary, we want to go further, not just at the retail level but also targeting the producers. The producers who benefit from these illegal cigarettes must be held legally accountable,” he said.
Meanwhile, the Head of the Jakarta Customs Regional Office, Hendri Darnadi, reaffirmed their commitment to pursuing producers and distributors.
“Our commitment is to pursue this to the very end to create a deterrent effect. We will pursue the ultimate beneficiaries. We hope this serves as a new template for the enforcement or investigation of illegal cigarettes,” he said.
He noted that the spirit of eradicating illegal cigarettes is a shared goal among all Customs divisions across various regions. However, he added that since every region has different strategic characteristics and environments, the patterns and speed of enforcement may be adjusted to suit local conditions.
“Customs, wherever they are, share the same spirit. Much like a multinational company, we have what is called a congruent goal—our objectives are identical. I am certain that our colleagues outside Jakarta share this same spirit. A difference in speed does not mean a difference in spirit,” he concluded.