Jakarta.  Senior lawmaker Hanif Dhakiri, a member of the House of Representatives (DPR) Commission XI, is calling for stricter supervision of illegal cigarette distribution, severe sanctions for offenders, and public education on the dangers of illegal cigarettes.

"The widespread circulation of illegal cigarettes is a major concern for Commission XI, as it undermines state revenue and poses a significant risk to public health. Firm action must be taken against the perpetrators, along with public education to raise awareness of the negative impact of illegal cigarettes," Hanif told the Jakarta Globe on Wednesday.

According to the Directorate General of Customs and Excise, the circulation of illegal cigarettes in Indonesia potentially results in a loss of state revenue amounting to Rp 15.01 trillion ($940.5 million) in 2023. The high price of legal cigarettes, combined with low public purchasing power and continued demand for tobacco, are contributing factors to the rise in illegal cigarette circulation.

Hanif also urged the government to strengthen monitoring by Customs and Excise in vulnerable areas, employ advanced technology to track tobacco distribution, and improve coordination among relevant agencies. He proposed making taxes on legal cigarettes fairer and more affordable to discourage consumers from purchasing illegal cigarettes.

"Tobacco excise taxes should be optimized as a control mechanism, ensuring that taxes on legal products are fair and affordable, leaving no room for illegal cigarettes," he said.

Additionally, Hanif stressed that individuals involved in the circulation of illegal cigarettes must face prosecution in accordance with the law. He calls for strengthening regulations, enforcing strict sanctions, and utilizing technology to address this issue effectively.

"Strengthening regulations with strict sanctions and utilizing technology is essential for effectively curbing the circulation of illegal cigarettes," Hanif concluded.

Under Law Number 39 of 2007 on Excise, various criminal penalties and fines apply to those involved in the circulation of illegal cigarettes. Article 54 stipulates imprisonment for 1 to 5 years and/or fines ranging from 2 to 10 times the value of the excise tax for those selling cigarettes without excise stamps. Articles 55 and 56 impose even harsher penalties for those involved in manufacturing, purchasing, using, or selling cigarettes with fake excise stamps, as well as for those who hoard, store, or trade excise goods derived from criminal activity.