Indonesia Customs Seizes 3.9 Million Illegal Cigarettes in Southeast Sulawesi
Customs Crackdown Targets Illegal Cigarette Distribution in Southeast Sulawesi
Kabarsaji.com – Authorities in Southeast Sulawesi have intensified efforts to curb the circulation of untaxed cigarettes, with Kendari Customs seizing 3,907,080 illegal cigarettes through 233 enforcement actions from January through early September 2026.
The operations were carried out across a region whose geography makes supply-chain monitoring especially demanding. Southeast Sulawesi consists of 15 regencies and two cities spread across an archipelago, creating multiple routes through which illicit goods can be transported and distributed.
Taufik Sapto Harsono, head of the Kendari Customs Office, said the cigarettes seized during the wider January-to-September campaign represented potential state revenue losses of about Rp4 billion. The office is officially designated as a Type C Medium Customs Supervision and Service Office.
Recent Operations Recover Hundreds of Thousands of Cigarettes
Between the middle of August and early September, enforcement activity resulted in the confiscation of 838,000 illegal cigarettes. The potential loss to the state linked to those goods was estimated at Rp822.1 million.
"In the most recent enforcement actions covering mid-August to early September 2026, we seized 838,000 illegal cigarettes, preventing potential state losses of Rp822.1 million," Taufik said.
A substantial share of the cigarettes taken in during that period came from cooperation with police investigators. The Special Criminal Investigation Directorate of the Southeast Sulawesi Regional Police handed over 576,000 illegal cigarettes to Customs. Those products were linked to a potential revenue loss of Rp557.3 million.
Customs officers also identified illegal cigarettes moving through delivery channels in Kendari City. Monitoring of shipping services led to the seizure of 55,800 cigarettes, with potential state losses estimated at Rp65.2 million.
Separate roadside enforcement in Kendari City resulted in the seizure of 6,200 cigarettes sold under the “BOSS Caffe Latte” brand. Officials placed the potential loss associated with that shipment at Rp5.9 million.
Another vehicle inspection in Baubau City uncovered 200,000 “RIIL BOLD” cigarettes. The goods had originated from Murhum Port and were valued at a potential Rp193.5 million in lost state revenue.
"We also seized 200,000 'RIIL BOLD' brand cigarettes from a vehicle in Baubau City; these had originated from Murhum Port and represented a potential state loss of Rp193.5 million," he added.
Distribution Network Extends Beyond the Province
Investigations by officers indicate that the illegal cigarettes circulating in Southeast Sulawesi were sourced from East Java. That finding highlights the cross-regional nature of illicit cigarette distribution, where products may travel long distances before reaching local markets.
Illegal cigarettes can take several forms, including products sold without proper excise stamps or with stamps that do not match the product. Their circulation undermines excise collection and can distort competition for businesses complying with tax and excise obligations.
For a province made up of islands and coastal transport routes, enforcement cannot rely solely on inspections at a single point. Cargo services, ports, vehicle movements, and cooperation between government agencies all form part of the effort to identify shipments before they reach consumers.
Taufik emphasized that coordination with other institutions remains central to the campaign. The Customs office has worked alongside the Southeast Sulawesi Regional Police and the Baubau Tax Office, combining enforcement activity with measures intended to restore lost revenue.
Administrative Fines Add Rp2.19 Billion in Revenue Recovery
Beyond confiscation and enforcement, Kendari Customs has used the ultimum remedium mechanism to recover state revenue. Under this approach, administrative penalties can be imposed in cases eligible for resolution through fines rather than further criminal proceedings.
As of early September 2026, payments of these administrative fines had recovered Rp2.19 billion. The fines are set at three times the applicable excise value, creating a financial consequence for violations while helping return funds to the state.
The combination of seizures and revenue recovery reflects two connected goals: preventing illegal tobacco products from continuing through the market and protecting excise revenue that would otherwise go unpaid. It also signals that enforcement is not limited to a single major interception, but includes repeated checks across transport routes and commercial channels.
"We extend our deepest appreciation to law enforcement agencies and relevant institutions—particularly the Southeast Sulawesi Regional Police and the Baubau Tax Office—for their synergy in combating illegal cigarettes. Moving forward, this collaboration will continue to be strengthened to safeguard state revenue and foster a healthy business climate," added Taufik.
With the region’s dispersed geography continuing to pose logistical challenges, Customs expects inter-agency coordination to remain a key part of efforts against illegal cigarette distribution in Southeast Sulawesi.
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