Illegal Cigarettes Still Circulating, Small Shops Selling Them on the Sly
Illegal cigarettes are still circulating in society in several regions. Based on consumer admissions, these illegal cigarettes can be found in grocery shops.
Donny (not his real name) admits to being a consumer of illegal cigarettes branded BONTE to this day.
According to his statement to CNBC Indonesia, around his residence in the Daru area, Tangerang Regency, Banten, there are three grocery shops selling BONTE cigarettes.
“There are 3 shops that sell it. Easy to buy, sometimes I buy from different shops. As far as I remember, 3 different shops always have stock,” he said to CNBC Indonesia on Thursday (16/4/2028).
He usually buys BONTE filter cigarettes for Rp13,000 per pack of 20. This price is much cheaper compared to filter cigarettes with official excise labels on the market. For comparison, filter cigarettes with official excise cost Rp12,000 per pack of 12 sticks.
Initially, said Donny, he smoked his neighbour’s cigarettes. It turned out those cigarettes were illegal branded BONTE. When he tried them and found they suited him.
However, what made him continue using illegal cigarettes was two reasons: because they are cheap and have a taste no different from legal cigarettes.
“I continued consuming these illegal cigarettes because they are cheap, usually buying legal cigarettes a pack of 16 sticks for 28 thousand. Now switching to illegal ones is more economical and can cut the smoking budget,” said Donny.
“Besides, the taste is no different from the legal filter cigarettes I used to consume,” he added.
The second source, named Erwin (not his real name), also said he could find illegal cigarettes in grocery shops in his area in Meruya, West Jakarta.
Erwin admits to being a customer of SMITH brand cigarettes, bought for Rp15,000 per pack. However, he last bought those cigarettes about four months ago.
“It’s been four months since I bought them. Now they’re gone, probably because they’re afraid of raids,” Erwin said to CNBC Indonesia on Thursday (16/4/2026).
Meanwhile, according to CNBC Indonesia’s investigation of four grocery shops in the Pondok Gede area, Bekasi, no illegal cigarettes branded SMITH, BONTE, or Manchester were found, which are often raided by the Directorate General of Customs and Excise (DJBC).
One grocery shop owner, Minah (not her real name), said she does not dare to sell illegal cigarettes like the brands mentioned above, even though there is potential for greater profit.
“Illegal ones like that, I don’t dare sell. They exist in the outskirts of villages,” she said to CNBC Indonesia on Thursday (16/4/2026).
Nevertheless, several grocery shops visited by CNBC Indonesia sell cheap cigarettes like SAGA, ARMOUR, FERRO, SERGIO, and SCORPION at relatively low prices ranging from Rp12,000 to Rp16,000 per pack of 16 sticks.
The CNBC Indonesia team tried to confirm with DJBC whether those brands are legal or illegal, but as of this report, no response has been received.
Government Not Standing Idly By
The government is not standing idly by in eradicating the circulation of illegal cigarettes. Finance Minister Purbaya Yudhi Sadewa said he has teamed up with the Coordinating Minister for Political and Security Affairs Djamari Chaniago to combat the backers of illegal cigarette producers and distributors.
He said cooperation with the Coordinating Minister for Political and Security Affairs in cracking down on illegal cigarette actors is important because he received information that they have backers, making it easy for them to operate so far.
“If according to people in the field, there is always backing,” said Purbaya, quoted on Thursday (16/4/2026).
He also gave a deadline for illegal cigarette producers to switch to legal by the latest May 2026. This target was set by Purbaya to boost state revenues.
“Clearly, we want May at the latest to be running, so that revenue comes to us,” he explained.
Purbaya revealed that the transition scheme can be done simply by paying a certain type of excise. Thus, cigarette producers can comply with excise regulations.
If illegal cigarette entrepreneurs do not comply, Purbaya said he will not hesitate to close illegal cigarette factories if they do not switch to the legal market.
“I can really ban illegal cigarettes, I will close them for real because we give them a chance to play in the legal market. If they don’t want to, we close them,” he emphasised.
In line with this, Purbaya said the legalisation process for illegal cigarettes is being discussed with the DPR. Purbaya hopes this policy can be accepted by the DPR and soon implemented by the government.
“Soon to discuss with the DPR how best, but the proposal is already done. Hopefully it can be accepted by the DPR, then we implement it,” he said.