Customs Seize 838,000 Illegal Cigarettes in Southeast Sulawesi

KENDARI, STUPA — Indonesian customs authorities have seized 838,000 illegal cigarettes in a series of enforcement operations in Southeast Sulawesi since mid-August, with potential losses to state revenue estimated at 822.1 billion rupiah ($50 million).

The seizures were made through several distribution channels, including courier services, vehicles and routes linked to ports, according to Taufik Sapto Harsono, head of the Kendari Customs and Excise Office.

Most of the cigarettes came from a case transferred to customs authorities by the Southeast Sulawesi Police's special crimes unit. The case involved 576,000 cigarettes, with potential state revenue losses estimated at 557.3 million rupiah.

Customs officers also seized 55,800 illegal cigarettes from a courier company in Kendari in August. The potential state revenue loss in that case was estimated at 65.2 million rupiah.

In another operation in Kendari, authorities intercepted a vehicle carrying 6,200 cigarettes of the BOSS Caffe Latte brand. The cigarettes did not bear the required excise stamps, resulting in potential state revenue losses of about 5.9 million rupiah, Taufik said on Monday.

A separate operation in Baubau in early September led to the seizure of 200,000 cigarettes, or 10,000 packs, of the RIIL BOLD brand.

The operation followed information from the public about a vehicle suspected of transporting illegal cigarettes from the Murhum Port area in Baubau. Customs officers stopped and searched the vehicle and found the cigarettes without excise stamps.

The potential state revenue loss from that seizure was estimated at 193.5 million rupiah.

Customs officials coordinated with the Baubau Tax Service Office in handling the case, including securing the seized goods and providing a location for inspection.

Kendari Customs said its investigation indicated that hundreds of thousands of the illegal cigarettes seized in the operations were suspected to have originated in East Java.

The seizures highlight the variety of distribution routes used to move illegal tobacco products into Southeast Sulawesi, including inter-regional transportation and courier services.

Southeast Sulawesi, which consists of 15 regencies and two cities, also presents logistical challenges for enforcement because of its dispersed island geography.

From January to early September, Kendari Customs recorded 233 excise-related enforcement operations and seized a total of 3,907,080 illegal tobacco products.

The potential state revenue losses prevented through those operations were estimated at about 4 billion rupiah.

Customs authorities also recovered 2.198 billion rupiah in state revenue through an ultimum remedium mechanism, under which certain cases can be resolved without a criminal investigation after offenders pay an administrative penalty equivalent to three times the excise duty that should have been paid.

Of that amount, 1.289 billion rupiah came from cases transferred by the Southeast Sulawesi Police's special crimes unit. Another 13.876 million rupiah came from enforcement operations in Kendari and 447.6 million rupiah from an operation in Baubau.

The seized goods from the three cases have been designated as state property and will be destroyed in accordance with applicable regulations.

Taufik said cooperation between customs authorities, law enforcement agencies and other government institutions was important to curb illegal cigarette distribution, protect state revenue and maintain fair competition in the tobacco industry.

“We appreciate and thank law enforcement agencies and relevant institutions, particularly the Southeast Sulawesi Police and the Baubau Tax Service Office,” Taufik said.

Customs authorities said they would continue monitoring distribution routes and coordinating with law enforcement agencies to disrupt the movement of illegal tobacco products. (Janne Sinten)