Indonesian Political, Business & Finance News

Illegal Cigarettes Nearly Cost the State Rp 24.72 Billion in Losses

| | Source: KOMPAS Translated from Indonesian | Regulation
Illegal Cigarettes Nearly Cost the State Rp 24.72 Billion in Losses
Image: KOMPAS

TANGERANG SELATAN, KOMPAS.com - The Banten Regional Office of the Directorate General of Customs and Excise (DJBC) destroyed 26,459,168 illegal cigarettes seized in customs and excise enforcement operations at the ICE BSD field in Tangerang Regency on Tuesday (21/4/2026). The head of the Banten DJBC Regional Office, Ambang Priyonggo, stated that the more than 26 million illegal cigarettes were estimated to be worth Rp 34.81 billion. The potential state revenue lost from these illegal cigarettes in the excise sector amounted to Rp 24.72 billion. The destruction process was carried out by burning at the site, followed by an environmentally friendly co-processing method at PT Solusi Bangun Indonesia in Klapanunggal, Bogor. In addition to the illegal cigarettes, 40.1 litres of beverages containing ethyl alcohol (MMEA) and 378 electronic cigarettes were also destroyed at the site using the same method. Ambang noted that the circulation of illegal cigarettes is still found in various areas, including open sales. “We are conducting market operations and also socialisation. What we are promoting is public awareness to consume legal goods,” he said. Shipments of illegal cigarettes now often utilise courier services as distribution channels. Therefore, to prevent this, they will collaborate with courier companies to detect them from the start. Moreover, the Banten region is one of the distribution routes, both for local consumption and shipments to other areas, making it easy for illegal cigarettes to be inserted. “Our region is a transit area. Many are also destined for other regions, including Sumatra,” he said. This destruction is part of efforts to supervise violations in the excise sector, which are considered to harm the state.

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