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[BUSINESS] · Indonesia · 7 sources

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DPR RI urges crackdown on illegal cigarette financiers

Indonesia's House of Representatives (DPR RI) is calling for stricter enforcement against illegal cigarette production. Following the seizure of approximately 59.8 million illegal cigarette sticks by Jakarta Customs in 2026—resulting in an estimated state revenue loss of Rp 46.79 billion—Commission III members urged authorities to target the beneficial owners and primary financiers rather than just distributors.

Legislators emphasized that tracing money laundering linked to these illegal operations is necessary to prevent the proceeds from funding other criminal activities. They noted that illegal trade creates unfair competition for legal businesses that comply with excise tax obligations.

Separately, Mukhamad Misbakhun, Chairman of Commission XI of the DPR, has denied allegations linking him to controversies regarding cigarette excise stamp orders. Misbakhun clarified that he has no authority over the excise stamp ordering process, which is managed by the Directorate General of Customs and Excise, and maintained his consistent support for the interests of tobacco farmers.

Entities

DPR RI · Directorate General of Customs and Excise · Mukhamad Misbakhun