Illicit Cigarette Circulation Suppressed, Thousands of Tobacco Industry Workers Protected

The Directorate General of Customs and Excise has successfully thwarted the circulation of 8,944,800 illicit cigarettes without excise stamps. Behind the enforcement action against millions of illegal cigarettes are thousands of workers who are protected from the impact of unfair business competition. The circulation of products without excise stamps not only harms the state but also potentially threatens the sustainability of the legal tobacco products industry, which has absorbed a large workforce. Therefore, the success of Customs in intercepting the circulation of 8,944,800 illicit cigarettes without excise stamps is more than just a law enforcement effort. The action is also considered to contribute to maintaining the livelihoods of approximately 3,578 hand-rolled cigarette workers who depend on the tobacco products industry that complies with regulations.

The enforcement was carried out through a joint operation by Jakarta Customs together with the Jakarta and Banten Regional Customs Office. From the operation, officers managed to seize millions of illicit cigarettes with an estimated goods value reaching IDR 13.28 billion and potential state revenue saved amounting to IDR 8.66 billion.

Director General of Customs and Excise, Djaka Budhi Utama, affirmed that eradicating illicit cigarettes is part of efforts to protect the public, law-abiding business operators, and state revenue used to support development and public services. “The enforcement against the circulation of these illicit cigarettes is a form of protection for the public from products that do not meet provisions, protection for business operators who comply with the rules, as well as an effort to safeguard state revenue used to finance development and public services,” said Djaka.

This case originated from public information regarding the alleged delivery of illicit cigarettes using a truck passing through the Jakarta Customs supervision area. After an investigation, officers stopped a truck on the Jakarta Outer Ring Road at KM 35.8 on Saturday (6/6). From the inspection, 8,000,800 illicit cigarettes of the SS brand without excise stamps were found. Case development then led to a warehouse in Serang City, Banten. At that location, the joint team found an additional 944,000 illicit cigarettes stored without official excise documents.

Overall, the total amount of goods from the enforcement reached 8,944,800 illicit cigarettes. The potential state revenue saved consists of excise duty amounting to IDR 6.67 billion, cigarette tax of IDR 667.28 million, and VAT on tobacco products amounting to IDR 1.32 billion. Currently, the case has entered the investigation stage. Customs, together with law enforcement officials, is still conducting an in-depth probe into several parties suspected of being involved in the illicit cigarette distribution network.