KPK: Customs Corruption Case Fuels Illegal Cigarette Proliferation in Indonesia
Jakarta — Indonesia’s Corruption Eradication Commission (KPK) has stated that alleged corruption at the Directorate General of Customs and Excise under the Ministry of Finance concerning excise administration has fuelled the proliferation of illegal cigarettes in Indonesia.
“Regarding cigarette excise duties. Is this also related to the illegal cigarettes that are currently rampant? One of them, yes,” said Asep Guntur Rahayu, Deputy for Enforcement and Execution at the KPK, at the KPK’s Red and White Building in Jakarta on Friday (27 February).
Asep elaborated that one corruption modus operandi in excise administration, particularly concerning cigarettes, involves the use of counterfeit excise stamps.
For example, he explained, cigarettes produced using machinery were marked with excise stamps as if they were hand-manufactured products, despite the two stamp types having different values.
“So there are those who purchase lower-value excise stamps. There are more of these compared to higher-priced excise stamps, and in this way, the state is harmed,” he said.
Previously, on 4 February 2026, the KPK conducted a raid at the Directorate General of Customs and Excise. On the same date, the KPK revealed that one of those arrested in the operation was Rizal, the Head of the Western Sumatra Regional Office of the Customs and Excise Directorate General.
On 5 February 2026, the KPK announced that six of the 17 people arrested were designated as suspects in a case of alleged bribery and gratification relating to counterfeit goods imports within the Customs and Excise Directorate General.
They were Rizal (RZL), serving as Director of Enforcement and Investigation of the Directorate General of Customs and Excise from 2024 to January 2026; Sisprian Subiaksono (SIS), Head of the Intelligence Subdirectorate for Enforcement and Investigation of the Directorate General of Customs and Excise; and Orlando Hamonangan (ORL), Head of the Intelligence Section of the Directorate General of Customs and Excise.
The others included John Field (JF), owner of Blueray Cargo; Andri (AND), Chair of the Documentation Team for Imports at Blueray Cargo; and Dedy Kurniawan (DK), Operational Manager at Blueray Cargo.
On 26 February 2026, the KPK designated Budiman Bayu Prasojo (BBP), Head of the Intelligence Section for Excise at the Directorate of Enforcement and Investigation of the Directorate General of Customs and Excise, as a new suspect in the case.
On 27 February 2026, the KPK stated that it was investigating further alleged corruption at the Directorate General of Customs and Excise, specifically concerning excise administration.