Indonesia Takes Strong Stance Against Illegal Tobacco and Liquor Trade

Massive Destruction of Contraband Goods

The Indonesian Customs Office conducted a significant enforcement action against illegal trade by destroying 13.4 million contraband cigarettes valued at Rp 16.2 billion and 19,511 bottles of illegal liquor (equivalent to 12,864.8 liters) worth Rp 9.9 billion. This operation resulted in an estimated state revenue loss of Rp 31.6 billion when combining both the cigarette and liquor excise duties and taxes.

Enforcement and Revenue Protection

The destruction ceremony was held symbolically at the Jakarta Customs Office while simultaneous destruction took place at PT Solusi Bangun Indonesia's facility in Gunung Putri, West Java. Director General of Customs and Excise, Djaka Budhi Utama, emphasized that this action demonstrates the institution's consistency in carrying out its mandate to protect state revenue. The operation highlights the government's serious efforts to combat illegal trade that deprives the state of significant tax revenue.

Impact on State Revenue

The illegal cigarettes alone represented a potential state loss of Rp 10.5 billion in terms of excise and cigarette taxes. When combined with the liquor destruction, which represented a Rp 21.1 billion potential loss from customs duty, VAT, and income tax, the total potential revenue loss amounted to Rp 31.6 billion. This substantial figure underscores the significant impact of illegal trade on Indonesia's fiscal health.

Government's Commitment to Combating Illicit Trade

The Customs Office has been intensifying its efforts to combat illegal trade, particularly in high-risk categories like tobacco and liquor. The destruction of these contraband goods sends a strong message about Indonesia's commitment to enforcing its tax and customs regulations. The government is also calling on public cooperation to help curb such illegal activities that harm the national economy.