[REVISION HISTORY]

Indonesia intensifies crackdown on illegal goods and tobacco

Updated 10 times since CLSTR started tracking revisions of this situation.

What changed

2026-09-09 12:57 UTC → 2026-09-10 06:42 UTC · added ~~removed~~

Indonesia’s Food and Drug Authority (BPOM) and customs agencies have broadened their 2026 crackdown on illegal goods. In early May, BPOM revoked permits for 11 cosmetics containing mercury and hydroquinone. In June, BPOM seized over 2 million unregistered cosmetics valued at Rp 27.6 billion in Tangerang. Customs operations intensified throughout the summer, targeting untaxed cigarettes and tobacco. By early August, the Directorate General of Customs and Excise (DJBC) reported that 906 million illegal cigarette sticks were seized in the first half of 2026. Enforcement continued into mid-August with the seizure of 3.28 million illegal cigarettes at the Banyumanik Toll Gate in Semarang, valued at Rp 4.87 billion. In early September, customs authorities in Merauke, South Papua, destroyed 1,498,800 sticks of illegal cigarettes seized in July, valued at approximately Rp 2.22 billion. Concurrently, major operations in Jakarta resulted in the seizure of 10,783,800 illegal cigarettes, causing an estimated state loss of Rp 8.05 billion. These goods, suspected to be from East Java, were intended for distribution to West Java, Sumatra, and Kalimantan. Other recent enforcement included intercepting Rp 2.3 billion worth of illegal cigarettes hidden in a modified water tanker in Semarang. In West Sumatra, authorities destroyed over 44 million illegal cigarettes and approximately 5,893 liters of illegal alcohol, representing an estimated value of Rp 68.88 billion. In East Java, local governments and customs collaborated to destroy 43.2 million illegal cigarettes. The DJBC has noted that Jakarta customs has now seized nearly 60 million illegal cigarettes year-to-date, a 31.7% increase compared to 2025. Regarding fiscal planning, the government and the House Budget Committee have revised the 2027 state budget (RAPBN), increasing both state expenditure and revenue targets by Rp 9.1 trillion. Total expenditure is now set at Rp 4,106.3 trillion, with a revenue target of Rp 3,435.1 trillion. Finance Minister Purbaya Yudhi Sadewa continues to advance a proposal for a new Tobacco Product Excise (CHT) structure, intended for discussion with the House of Representatives (DPR RI) in early October.

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