Jakarta Sees Surge in Illegal Cigarette Crackdowns, Indicating Serious Problems

The number of crackdowns on excise goods in Jakarta, including illegal cigarettes, has seen a significant increase in 2026. The Directorate General of Customs and Excise (DJBC) Jakarta has seized 59.8 million sticks of illegal cigarettes year-to-date. Head of the DJBC Jakarta Regional Office, Hendri Darnadi, stated that the total state loss from these violations has reached IDR 46.79 billion. He emphasized that the circulation of illegal cigarettes not only harms the state but also creates unhealthy business competition. "Throughout 2026, there have been 413 excise-related enforcement actions, resulting in the seizure of 59 million, nearly 60 million sticks (of illegal cigarettes)," Hendri said during a press conference at the DJBC Jakarta Regional Office on Wednesday (9/9/2026). Hendri highlighted that this issue requires serious attention because excise revenue is a substantial source of state income. The spread of illegal cigarettes can erode state revenue or fiscal resources. "What needs to be a very serious focus or attention from all of us is that cigarettes are one of the largest sources of state revenue in the excise sector. Therefore, the circulation of illegal cigarettes does not only erode state revenue or fiscal resources," Hendri asserted. He noted that the seized quantity has increased by approximately 257% compared to the same period in 2025. The DJBC Jakarta Regional Office recorded the seizure of 23 million sticks of illegal cigarettes last year. "This number has increased by 250% compared to the achievement in the same period last year, which was 23 million sticks up to August 31. This indicates a serious problem, that the illegal cigarette trade is very massive," he stated. For information, the total losses also account for the seizure of 12,093 liters of Ethyl Alcohol Containing Beverages (MMEA). Additionally, Customs and Excise Jakarta confiscated 5,300 liters of ethyl alcohol. The total number of excise-related enforcement actions increased by 31.7% compared to the achievements in 2025. The value of excise goods, including illegal cigarettes, MMEA, and ethyl alcohol, reached IDR 83.39 billion throughout 2026.