Indonesian Political, Business & Finance News

Sumbawa Customs Seizes 2.2 Million Illegal Cigarettes Worth Rp3.4 Billion

| Source: DETIK_BALI Translated from Indonesian | Regulation
Sumbawa Customs Seizes 2.2 Million Illegal Cigarettes Worth Rp3.4 Billion
Image: DETIK_BALI

Sumbawa Customs in West Nusa Tenggara (NTB) seized 2,278,815 illegal cigarettes, estimated to be worth Rp3.4 billion, during 2026. The seizures resulted from monitoring and enforcement against the circulation of illegal excisable goods on Sumbawa Island from January to October.

“The total number of illegal cigarettes subject to enforcement reached 2.278 million, with an estimated value of around Rp3.4 billion and potential state revenue losses of Rp2.21 billion,” Sumbawa Customs chief Sugeng Heriyanto said in a press statement on Thursday (22 October 2026).

Sugeng said violations uncovered during the operations were mainly the distribution of cigarettes without excise stamps, the use of counterfeit or previously used stamps, and the use of stamps that were not appropriate for the products.

“These violations could reduce state revenue from excise while also creating unfair competition for manufacturers and traders who comply with the rules,” he said.

Sugeng said one notable case uncovered by Sumbawa Customs in October 2026 involved stopping the transport of 236,000 illegal cigarettes. The agency also took action against a shipment of 144,080 illegal cigarettes sent through a courier service during the month.

“The machine-made clove cigarettes of various brands are estimated to be worth Rp353 million, with potential state revenue losses of Rp177.59 million,” he said.

He said the findings showed that illegal cigarette distribution on Sumbawa Island used a range of channels, from freight vehicles to courier services.

Sugeng said Sumbawa Customs would step up monitoring through intelligence operations, inspections of transport vehicles, and co-ordination with law enforcement agencies and relevant institutions.

“Monitoring will continue to be strengthened to curb the circulation of illegal cigarettes, protect state revenue and create a healthy business climate for businesses that comply with excise regulations,” he said.

Enforcement against the circulation of illegal cigarettes is based on Law No. 11/1995 on Excise, as amended most recently by Law No. 7/2021 on the Harmonisation of Tax Regulations.

Sumbawa Customs works with the police, prosecutors, the Indonesian Military (TNI), local government and the Civil Service Police Unit (Satpol PP) to strengthen oversight of illegal excisable goods. Anti-smuggling efforts are also supported by the Tobacco Excise Revenue-Sharing Fund (DBH CHT), in accordance with applicable regulations.

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