Indonesian Political, Business & Finance News

KPK Reveals Modus Operandi: Mechanised Cigarettes Taxed with Manual Excise in Customs Bribery Case

| Source: DETIK Translated from Indonesian | Regulation
KPK Reveals Modus Operandi: Mechanised Cigarettes Taxed with Manual Excise in Customs Bribery Case
Image: DETIK

The Corruption Eradication Commission (KPK) has disclosed a modus operandi to cheat cigarette excise taxes in a case involving alleged bribes to officials of the Directorate General of Customs and Excise (DJBC) of the Ministry of Finance. The agency said that mechanised cigarette producers use manual cigarette excise stamps to obtain lower duties. “There are several types of cigarette companies: some make mechanised cigarettes, others manual. The excise price differs accordingly. There are also modus operandi whereby mechanised cigarettes use manual excise stamps because the excise is cheaper,” KPK spokesperson Budi Prasetyo told reporters at the KPK building in Kuningan, South Jakarta, on Thursday 5 March 2026. “This makes the public believe what they buy is properly taxed, even if it is not compliant. There are also other cigarettes that are not stamped at all.” “But the public may see a stamp and think it’s compliant; when we check, it is different. The excise that should be on manual stamps is placed on mechanised cigarettes, or in some cases there is no stamp at all,” he said. The KPK did not specify which cigarette companies were involved; that information would be disclosed during witness examinations. “We cannot be specific now. When summons are issued for testimony, we will update,” he added. Earlier, the KPK said the case has contributed to a surge in the circulation of illegal cigarettes in Indonesia. The agency plans to investigate two cigarette producers in East Java and Central Java believed to have made payments. “Currently, among them are from Central Java and East Java. We will request testimony; from which companies did the payments originate. We will map the companies to identify those that made payments to the customs officials,” Budi Prasetyo told reporters at the Merah Putih building in Jakarta on Monday 2 March. Although the case originated from findings at the centre, the KPK did not rule out expanding the matter to the regional level. Given that Customs has provincial offices, investigators will examine whether there is a role for the Regional Office in smoothing the bribery before it reaches the central level. The KPK says counterfeit and illegal goods can enter Indonesia because of bribery among the staff of the Directorate General of Customs and Excise (DJBC) of the Ministry of Finance. The bribery allegedly leads to inspections not being carried out in accordance with rules. Asep Guntur revealed there is an agreement between the Intelligence Section of Customs, Orlando Hamonangan, and the Head of Intelligence of the Customs Penalty and Investigation Sub-Directorate (Kasubdit Intel P2 DJBC), Sisprian Subiaksono, with the owner of PT Blueray John Field, the head of the Blueray Import Documents Team Andri, and Operational Manager Dedy Kurniawan of PT Blueray in October 2025. They allegedly conspired to regulate the import pathways into Indonesia. There are currently seven suspects in the case of bribery in import goods at the Customs and Excise. They are: 1. Rizal (RZL) as Director of Enforcement and Investigation at the Directorate General of Customs and Excise (P2 DJBC) from 2024 to January 2026; 2. Sisprian Subiaksono (SIS) as Head of the Sub-Directorate for Intelligence Enforcement and Investigation (Kasubdit Intel P2 DJBC); 3. Orlando (ORL) as Head of Intelligence, Directorate General of Customs and Excise (Kasi Intel DJBC); 4. Jhon Field (JF) as Owner of PT Blueray 5. Andri (AND) as Head of the Import Documentation Team at PT Blueray 6. Dedy Kurniawan (DK) as Operational Manager PT Blueray. 7. Budiman Bayu Prasojo (BBP) as Head of Intelligence Section of Cukai P2 DJBC Bea Cukai

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