Indonesia Customs Seizes 3.9 Million Illegal Cigarettes in Southeast Sulawesi

Indonesia's Kendari Customs seized 3.9 million illegal cigarettes during 233 enforcement operations in Southeast Sulawesi between January and early September, preventing potential state revenue losses of Rp4 billion, according to Taufik Sapto Harsono, Head of the Kendari Customs Office. The most recent enforcement actions alone, from mid-August to early September, resulted in the seizure of 838,000 illegal cigarettes, averting a potential state loss of Rp822.1 million.

Most of these seized items, totaling 576,000 cigarettes with a potential loss of Rp557.3 million, were handed over by the Special Criminal Investigation Directorate of the Southeast Sulawesi Regional Police.

Additional seizures included 55,800 cigarettes through monitoring shipping services in Kendari City, worth Rp65.2 million in potential state loss, and 6,200 BOSS Caffe Latte brand cigarettes following a vehicle stop, with a potential loss of Rp5.9 million. Kendari Customs also seized 200,000 RIIL BOLD brand cigarettes from a vehicle in Baubau City, originating from Murhum Port and representing a potential loss of Rp193.5 million.

Investigations suggest these illegal cigarettes are primarily coming from East Java. The region's geography, comprising 15 regencies and two cities across an archipelago, poses a unique challenge for monitoring distribution, emphasizing the importance of synergy with law enforcement agencies in combating the issue. Besides enforcement actions, Kendari Customs is recovering state revenue through the ultimum remedium mechanism, with administrative fines three times the excise value contributing to recovering Rp2.19 billion as of early September.

Kendari Customs appreciates the collaboration with law enforcement agencies, particularly the Southeast Sulawesi Regional Police and the Baubau Tax Office, and reaffirms the commitment to strengthen this partnership to safeguard state revenue and promote a healthy business climate.