Indonesia probes illegal cigarette smuggling network

“We will thoroughly investigate to identify the owners and financiers behind the millions of illegal cigarettes intercepted at the Merak-Bakauheni crossing on June 11,” Customs Director General Djaka Budhi Utama said on Friday.

Customs officers seized 8,262,000 untaxed cigarettes, comprising 2,912,000 sticks of the OK BOLD brand and 5,350,000 imported Double Happiness cigarettes.

Djaka said the cigarettes were being smuggled through the Merak-Bakauheni ferry route linking Java and Sumatra.

The confiscated goods were valued at Rp12.68 billion (about US$708,000), while prevented state losses totaled Rp7.9 billion, including excise duties, cigarette taxes and value-added tax on tobacco products.

Authorities also arrested a suspect identified as JFR, the driver of a Colt Diesel truck used to transport the illegal excise goods.

“We have named JFR as a suspect. He had carried out similar deliveries several times and was arrested while passing through Banten,” Djaka said.

Investigators found the smugglers used livestock feed shipments as a cover to evade detection.

The illegal cigarettes were believed to have originated from East Java and Central Java and were destined for Sumatra.

“They concealed the cargo beneath stacks of animal feed to mislead officers,” Djaka added.

The case will now be handled by police investigators seeking to uncover the ownership structure and supply network behind the illegal goods.

JFR has been charged under Articles 54 and 56 of Indonesia’s Excise Law No. 39 of 2007.

“The Banten Customs Office and Merak Customs Office have launched a formal investigation after obtaining sufficient evidence that the suspect committed unlawful acts,” Djaka said.

Related news: Riau Customs foils massive cigarette smuggling operation

Related news: Navy foils attempt to smuggle illegal cigarettes in Riau Islands

Translator: Azmi Syamsul M, Resinta Sulistiyandari