Untaxed Cigarettes: The Quiet Path to Profits Amid the Smoke
Behind the simple display of a roadside stall, the transaction takes place almost silently. A pack of cigarettes changes hands without an excise stamp or official label. Its price is far more wallet-friendly, potentially half that of legal cigarettes.
Hidden behind that transaction is a well-organised distribution chain and profits that cannot be underestimated. How do they operate, and how substantial are the gains they generate?
On Friday night (17/4/2026), Republika attempted to survey several grocery stalls in the Tajur Halang area, Bogor Regency. At one stall that “only closes on Judgement Day,” customers were almost incessant, arriving one after another.
“As usual,” said a middle-aged buyer who had just arrived, gesturing in a Madurese dialect. The woman tending the stall did not hesitate, promptly retrieving cigarettes not displayed on the counter. The cigarettes appeared to be marked with a code like “63307” or readable as “Geboy.”
The next customer arrived, wanting to buy the same as the previous one. This time, the stall attendant glanced at her husband, who was heartily eating dinner, as if seeking approval.
Only when the buyer finally spoke in Madurese did the atmosphere ease. The stall attendant even offered various other cheap cigarettes she sold. Prices ranged from Rp 11,000 to Rp 13,000. A full carton of cigarettes was priced at Rp 125,000.
“Geboy is the most popular; it comes in grape, melon, and mango flavours,” said Ipang, one of the stall attendants met by Republika.
In addition to selling those cigarettes, Ipang also offered other untaxed cigarettes. Their names were unique, such as Dubai and Papi-Mami. There were also cigarettes imitating famous brands, like Marbol, whose packaging design resembled cowboy cigarettes from America.
From selling these duty-free cigarettes, Ipang reaps more profit than from official cigarettes. “It’s more profitable because there are more buyers for these since they’re cheap,” said the man from Sumenep in his native tongue.
Untaxed cigarettes, or often called illegal cigarettes, are not a new phenomenon. However, in recent years, their circulation has become increasingly widespread, especially in suburban areas to rural regions.
About 200 metres from Ipang’s stall, Republika stopped by another grocery stall.
Upon approaching, a man emerged from behind the counter. His eyes darted quickly, scrutinising the face of the long-haired man standing before him. There was a pause of several seconds before he responded, as if weighing: is this a real buyer, or someone come to monitor?
His forehead furrowed, lips pressed tightly, while his hands busied themselves tidying scattered goods, like small movements to mask nervousness.
When asked if he sold cheap cigarettes, the seller seemed hesitant before finally answering “no.” For some reason, he claimed not to be Madurese.
“Don’t sell them, not Madurese,” he said, even though after the prospective buyer left, he was heard having a phone conversation in the language of the island north of East Java.
Myth of Exclusivity…