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KPK Probes Alleged Trillion-Rupiah Cigarette Excise Fraud Involving Djarum

Yustinus Paat
October 29, 2026 | 11:04 pm
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FILE - A customs official shows illegal cigarettes at the Customs and Excise office in Kudus, Central Java, on Feb. 4, 2016. (Antara Photo/Yusuf Nugroho)
FILE - A customs official shows illegal cigarettes at the Customs and Excise office in Kudus, Central Java, on Feb. 4, 2016. (Antara Photo/Yusuf Nugroho)

Jakarta. The Corruption Eradication Commission (KPK) is investigating suspected corruption involving cigarette excise payments at tobacco giant Djarum, with preliminary estimates suggesting potential state losses running into trillions of rupiah, a commission spokesman said Thursday.

The disclosure came a day after KPK investigators searched Djarum's headquarters and a customs office in Kudus, Central Java, seizing documents and electronic records as part of the investigation.

"Our preliminary calculations indicate that the alleged corruption may have caused state losses amounting to trillions of rupiah. We must wait for further developments, as our investigators are still working in the field and questioning witnesses to establish the facts of the case," KPK spokesman Budi Prasetyo told reporters in Jakarta.

No suspects have been named in the case.

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Budi said investigators were examining allegations that individuals within Djarum's management had colluded with customs officials to obtain cigarette excise stamps at rates lower than those legally applicable.

However, he stressed that investigators had yet to establish the precise mechanism behind the suspected irregularities.

"We cannot confirm the specific methods involved at this stage because the investigation is still ongoing. What is clear is that the case concerns suspected excise irregularities that may have resulted in state financial losses," Budi said.

Under Indonesia's tobacco excise system, cigarette products must carry official excise stamps issued by the Directorate General of Customs and Excise. The applicable excise rates depend on regulatory classifications, including the type of cigarette and relevant pricing and production criteria.

Investigators are seeking to determine whether the excise stamp arrangements under examination involved violations of those requirements and, if so, the resulting financial impact on the state.

Investigation Linked to Earlier Customs Corruption Case
Budi said the investigation developed from an earlier anti-corruption operation involving officials at the Directorate General of Customs and Excise and several businesspeople.

The earlier case, which emerged this year, resulted in at least eight suspects being named, according to the commission.

Three of those individuals have since been convicted of bribery offenses.

KPK has not disclosed the identities of any Djarum personnel suspected of involvement in the latest allegations, nor has it specified the period during which the alleged excise irregularities occurred.

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