Indonesia to deploy advanced track and trace technology for excise stamps

Indonesia's Minister of Finance, Purbaya Yudhi Sadewa, has announced the implementation of advanced ‘track and trace’ technology to prevent the counterfeiting of excise stamps and monitor tobacco production. Developed in collaboration with Peruri and a foreign technology firm, the system utilizes a digital scanning method more sophisticated than standard barcodes, allowing excise stamps to be traced back to their original factory via mobile phones.

The government plans to install machines in cigarette factories to monitor production volumes in real-time, with data linking directly to the Directorate General of Customs and Excise. The rollout is being conducted in stages: one machine is currently being tested in Central Java, with a target of 100 machines within six months and 240 machines within nine months.

In addition to technological enforcement, the Ministry is working to bring illegal cigarette traders into the formal tax system by discussing new excise categories for certain cigarette types with the House of Representatives (DPR). Minister Purbaya warned that while the government is providing a path for illegal operators to become compliant, those who continue illicit practices will face strict legal action.