Indonesian Customs Cracks Down on Illicit Cigarette Trade in Major Operation

Seizure Details and Enforcement Effort

In a significant enforcement action on January 6, 2026, Indonesian Customs and Excise officials seized approximately 160 million illicit cigarettes stored in a warehouse in Pekanbaru, Riau. The contraband, valued at around Rp 399.2 billion, represents a potential state loss of Rp 213.76 billion in unpaid excise duties. The operation was conducted by a joint task force comprising the Directorate of Customs and Excise Enforcement, Riau Customs Office, and the Strategic Intelligence Agency (BAIS) of the Indonesian Armed Forces.

Investigation and Intelligence Gathering

The successful operation resulted from a four-month intelligence operation involving coordinated efforts across multiple units and agencies. The enforcement action was supported by community tips and demonstrates the effectiveness of combining official surveillance with public participation. The warehouse was found to be storing cigarettes without the required excise stamps, violating Indonesian tobacco control regulations.

Impact and Government Commitment

This major seizure underscores the Indonesian government's commitment to combating the illicit tobacco trade, which significantly impacts state revenue. The operation highlights the importance of inter-agency collaboration in addressing tax evasion and contraband distribution. The enforcement action also sends a strong deterrent message to those involved in illegal cigarette trade, demonstrating the government's resolve to protect state revenue through rigorous enforcement and monitoring.