KPK Urged to Expose Illegal Cigarette Excise Mafia
The Corruption Eradication Commission (KPK) is being urged to openly reveal the alleged practices of an illegal cigarette excise mafia that is suspected to involve a network of businessmen and officials within the Directorate General of Customs and Excise (DJBC) of the Ministry of Finance.
The call was made by Uchok Sky Khadafi, Executive Director of the Centre for Budget Analysis (CBA), following the KPK’s examination of several cigarette entrepreneurs some time ago to delve into the excise administration mechanisms at the Directorate General of Customs and Excise.
Uchok stated that the trade in illegal cigarettes is a serious crime that not only erodes state revenues from the excise and tax sector but also damages the overall governance of the tobacco industry.
According to him, the circulation of illegal cigarettes could not thrive without weak supervision gaps, negligence, or even suspected involvement of officials who should be taking action.
“The trade in illegal cigarettes is a serious crime that harms state revenues from the excise and tax sector. Moreover, this practice also damages the governance of the tobacco industry, which should operate in a healthy and fair manner. Therefore, we fully support the KPK in thoroughly investigating this case to its roots,” Uchok said in a written statement on Thursday (2/4).
He assessed that the proliferation of illegal cigarettes indicates systemic problems in excise supervision. For this reason, he requested that law enforcement should not stop at field perpetrators or specific entrepreneurs alone.
Uchok asked the KPK to also trace broader networks, including parties that orchestrate, protect, benefit from, and allow illegal practices to continue for years.
He also urged the KPK not to cover up the investigation and prosecution processes.
Transparency, he continued, is key to enabling the public to monitor the anti-corruption agency’s commitment in dismantling the illegal cigarette excise mafia that has allegedly operated behind the scenes for a long time.
“We request that the KPK open the handling of this case transparently to the public. Transparency is very important to maintain public trust in the commitment to eradicating corruption in Indonesia,” he said.
The examinations of several cigarette entrepreneurs were to deepen findings of money in a safe house within the investigation of alleged bribery and gratification cases implicating DJBC officials.
The cigarette entrepreneurs examined as witnesses included Liem Eng Hwie and Martinus Suparman.
“This is also to cross-check related to the investigators’ findings in the search operation at one safe house located in Ciputat, South Tangerang,” said KPK Spokesperson Budi Prasetyo at the office in Jakarta on Wednesday (1/4) night.
“The money found in that safe house is suspected to partly originate from excise administration, where one aspect of excise administration involves cigarette companies,” he added.
During the search of a house in Ciputat, South Tangerang, which was also referred to as a safe house some time ago, the KPK seized Rp5 billion in cash stored in five suitcases.
The KPK had summoned a total of three cigarette entrepreneur witnesses on Tuesday (31/3). They were Liem Eng Hwie, Rokhmawan, and Benny Tan. However, only Liem Eng Hwie attended.
Meanwhile, on Wednesday (1/4), only one cigarette entrepreneur named Martinus Suparman was examined.
The name Martinus Suparman was previously mentioned in the gratification receipt case of former Yogyakarta Customs Chief Eko Darmanto. Martinus Suparman was said to have given Eko Rp930 million.
The KPK has named seven individuals as suspects in the alleged bribery and gratification case implicating DJBC officials.
They are former Director of Investigation and Enforcement of the Directorate General of Customs and Excise for the period 2024-January 2026, Rizal; Head of the Subdirectorate of Enforcement Intelligence and Investigation of the DJBC (Kasubdit Intel P2 DJBC), Sisprian Subiaksono.
Then, Head of the Intelligence Section of the Directorate General of Customs and Excise (Kasi Intel DJBC), Orlando; Chairman of the Import Documents Team of PT BR, Andri; DJBC Employee Budiman Bayu Prasojo; Owner of PT Blueray named John Field; and Operational Manager of PT BR, Dedy Kurniawan.
The suspects have been detained at the KPK Detention Center.