SAMPIT - The Customs and Excise Supervision and Service Office of the Customs Type Pabean C Sampit, East Kotawaringin Regency, Central Kalimantan, destroyed hundreds of thousands of illegal cigarettes in Central Kalimantan by burning them.
"What was destroyed today came from the operation to crack down on Sampit Customs and Excise for the period July 2023 to December 2024 in the form of 720,456 tobacco stalks in the form of illegal cigarettes and 175.22 liters of drinks containing ethyl alcohol or illegal alcohol," said Head of the Customs and Excise Supervision and Service Office. Type Customs C Sampit, Agus Dwi Setia Kuncoro in Sampit, Antara, Thursday, February 27.
Agus said that the illegal goods destroyed today are estimated at Rp997,804,952 and the potential state losses incurred from the excise value, VAT, and cigarette taxes worth Rp709,625,608.
The destruction of illegal goods was carried out in the courtyard of the office of the Directorate General of Customs and Excise at the Regional Office of the Directorate General of Customs and Excise in Southern Kalimantan, the Customs and Excise Service Office of the Customs Type C Sampit.
Also present were the Assistant for Government and People's Welfare of East Kotawaringin, Rihel and representatives of related agencies.
Agus explained that the Customs and Excise Supervision and Service Office of the Customs Type C Sampit carried out the destruction of Goods that had become State-Owned (BMMN), in the form of Excise Goods (BKC), namely tobacco products in the form of cigarettes and beverages containing ethyl alcohol or illegal alcohol that had received approval for the destruction of the Minister of Finance through the State Property Service Office and Pangkalan Bun Auction.
Sampit Customs Enforcement operations were achieved in synergy with law enforcement officials, local governments, vertical agency partners, as well as with the Ministry of Finance Satu Sampit.
Collaboration and support have long been established with TNI, Polri officers, District Attorneys, District Courts, local government ranks and Satpol PP of East Kotawaringin Regency, Seruyan and Katingan as well as relevant stakeholders, both vertical and regional agencies, goods deposit/delivery service companies and also the active role of the support of all levels of society who care about efforts to eradicate illegal cigarettes and alcohol.
The distribution and circulation of this illegal BKC, among others, through the transportation, supply, delivery, supply or sale of cigarette and alcohol products without being attached to excise stamps (polos), attached to fake or used excise stamps, or attached to excise stamps that are not their rights or do not match their designation.
He said the increase in cigarette prices was partly due to an increase in excise rates. Based on the DJBC study in 2022, every 10 percent increase in excise rates will have an impact on the potential increase in the circulation of illegal cigarettes by at least 0.8 percent.
The results of a survey of illegal cigarettes by Gajah Mada University in 2023, the percentage of illegal cigarettes in Indonesia in 2023 was 6.9 percent, an increase from the previous year of 5.5 percent.
This illegal BKC enforcement operation is a realization of Customs duties in law enforcement provisions of Law Number 11 of 1995 as amended by Law Number 39 of 2007 concerning Excise and was finally amended by Law Number 7 of 2021 concerning Harmonization of Tax Regulations and Government Regulation Number 49 of 2009 concerning Enforcement in the field of excise.
Furthermore, this illegal BKC has been designated as BMMN to be destroyed in accordance with Government Regulation Number 27 of 2014 concerning the Management of State/Regional Property and Regulation of the Minister of Finance Number 83 of 2016 concerning Procedures for the Implementation of Destruction and Elimination of State Milik Goods. This BMMN destruction is carried out by burning, destroying and mixing with determinant water.
Customs and Excise in carrying out this enforcement operation cannot be separated from the regularized function in an effort to regulate and control the circulation of the BKC, as well as the budgetair function to secure state revenues from loss of excise and tax levies that should be paid.
"Basically, the legal state levies from BKC will assist the government in carrying out revenue development and redistribution to finance all public interests, such as the distribution of cigarette taxes to local governments that can be used for the benefit of public health and law enforcement," said Agus.
He added that in 2025, APBN expenditure is projected to be worth IDR 3,621.3 trillion, an increase of 8.9 percent compared to 2024, supported by tax revenues of IDR 2,490.9 trillion with excise revenues targeted at IDR 244.2 trillion.
The enactment of Law Number 7 of 2021 concerning HPP and Regulation of the Minister of Finance Number 237 of 2022 concerning Investigation of Alleged Violations in the Excise Sector is expected to maximize state revenues through the application of the UItimum Remedium as an effort to take action to suppress the circulation of illegal BKCs as well as to secure state revenues for development.
Agus emphasized that illegal cigarettes and alcohol do not only have an impact on state revenue, but are also closely related to aspects of health, security and order, aspects of industry, labor and the community's economy.
"Therefore, the increase in preventive, preemptive and repressive activities continues to be intensified through synergy and collaboration with other law enforcement officers, local governments and all Customs stakeholders," he added.
Sampit Customs and Excise has organized various kinds of prevention activities in the form of socialization and publication, education and guidance to the public, active patrols, and Illegal Cigarette Strike Operations.
Likewise, accompanied by enforcement efforts to suppress the circulation of legal exciseable goods in the districts of East Kotawaringin, Katingan and Seruyan in the hope of creating a conducive, law-abiding business climate and fulfilling state obligations.
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"In 2025, this extermination activity can provide a message of awareness to the public to be more law-abiding and understand the importance of becoming a legal business actor as well as become clear evidence of Sampit Customs seriousness to protect the public from illegal excisable goods," said Agus.
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