TEMPO.CO, Palembang - The head of the Enforcement and Investigation Section of the Palembang Customs, Niko Hadi Saputro, said that as of October 2024, the authorities had seized at least 13 million sticks of cigarettes that were not registered with the Customs or illegal cigarettes in South Sumatra.
"The cigarettes we seized were mostly machine-made clove cigarettes (SKM) from various shops," said Niko Hadi during a public event on illegal cigarettes at the Sematang Borang Subdistrict office, Palembang, on Tuesday, November 12, 2024.
The proliferation of illegal cigarettes is the result of an average 10 percent increase in tobacco excise tax (CHT) set by the Indonesian Finance Ministry in early January 2024.
Niko said that South Sumatra is a region with high consumption of illegal cigarettes due to the unofficial distribution of cigarettes in the outskirts of South Sumatran cities, as well as their affordable prices.
"The circulation of illegal cigarettes includes both homemade products and imported products that enter through unofficial channels, with the outskirts of cities in South Sumatra having the highest distribution. It is not as prevalent in major cities," Niko said.
He stated that following the discovery of various types and brands of illegal cigarettes entering South Sumatra, Customs conducted educational sessions with community figures such as Neighborhood Association (RT) and Community Unit (RW) leaders, as well as merchants in the Sematang Borang Subdistrict.
"This year, we first conducted illegal cigarette dissemination to the public. The content focuses on education on which cigarettes are legal and illegal to purchase and consume," said Niko.
This year marked the inaugural implementation of the dissemination program which could be expanded to other regions in the future.
Meanwhile, the Subdistrict Chief of Sematang Borang, Arpan, stated that the dissemination is aimed at educating the public about illegal cigarettes that could harm the country as they are not registered with customs and taxes.
"We hope the public will understand and refrain from selling or buying illegal cigarettes to contribute to our economic growth," he added.
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