Papua Customs recorded 149 enforcement actions against illegal excisable goods between January and September 2026, preventing an estimated Rp2.13 billion in potential state revenue losses. The operations resulted in the seizure of millions of illegal tobacco sticks and nearly 1,900 liters of alcoholic beverages, reflecting the Indonesian government’s continuing efforts to protect public revenue, strengthen market oversight, and maintain fair business competition across Papua.
The figures, released by the Regional Office of Special Customs for Papua on November 2, 2026, highlight the scale of efforts to combat the circulation of goods that do not comply with Indonesia’s excise regulations. During the nine-month period, customs officers and their operational units across Papua recorded 149 enforcement actions involving approximately 2.47 million tobacco sticks and 1,878.65 liters of alcoholic beverages containing ethyl alcohol.
The seized goods were estimated to have a combined value of Rp4.61 billion. More importantly for state finances, the enforcement actions prevented potential revenue losses estimated at Rp2.13 billion.
For Encep Dudi Ginanjar, head of the Regional Office of Special Customs for Papua, the operations form part of a broader commitment to protect state revenue while ensuring that businesses compete under the same regulatory conditions.
“Pengawasan dan penindakan terhadap barang kena cukai ilegal akan terus kami perkuat. Upaya ini tidak hanya bertujuan melindungi penerimaan negara, tetapi juga menciptakan persaingan usaha yang sehat serta memberikan perlindungan kepada masyarakat dari peredaran produk yang tidak memenuhi ketentuan,” Encep said, as quoted by Indoposco.
His statement reflects the dual purpose of customs enforcement: safeguarding government revenue and protecting consumers and legitimate businesses from products circulating outside the legal framework.
Nine Months of Customs Enforcement in Papua
January to September: 149 enforcement actions
The latest figures cover the period from January through September 2026, providing an overview of customs enforcement across Papua during the first three quarters of the year.
The 149 actions were carried out by the Regional Office of Special Customs for Papua together with its operational units throughout the region. The operations focused on excisable goods that were suspected of violating applicable regulations, particularly tobacco products and alcoholic beverages.
The largest category by quantity was tobacco, with approximately 2.47 million sticks recorded among the enforcement results. Officers also handled 1,878.65 liters of alcoholic beverages containing ethyl alcohol, commonly referred to in Indonesia as Minuman Mengandung Etil Alkohol (MMEA).
The estimated value of the goods reached Rp4.61 billion. The potential state revenue loss prevented through these enforcement activities was calculated at Rp2.13 billion.
These figures illustrate why excise control remains an important part of Indonesia’s fiscal administration. Excise is not simply a tax collected from particular products. It is also a regulatory instrument that allows the government to supervise the production, distribution, and circulation of goods subject to specific fiscal and legal requirements.
When products enter the market without fulfilling their excise obligations, the consequences extend beyond lost government revenue. Businesses that comply with the rules may face unfair competition from operators selling goods without bearing the same regulatory costs. Consumers may also encounter products whose origins, distribution channels, or compliance status are difficult to verify.
For Papua, where commercial activity connects urban centers, smaller communities, and cross-regional distribution routes, effective supervision is an important part of maintaining an orderly market.
Why illegal tobacco and alcohol matter
Tobacco products and alcoholic beverages are subject to excise regulations in Indonesia. Their production, importation, and distribution must comply with the relevant requirements, including applicable excise payments and documentation.
Illegal products can take several forms, including goods distributed without the required excise stamps or products whose documentation and fiscal status do not meet regulatory requirements. Their circulation can undermine the system designed to ensure that businesses fulfill their legal obligations.
The seizure of approximately 2.47 million tobacco sticks therefore represents more than the removal of goods from commercial circulation. It demonstrates the scale of the challenge facing authorities responsible for monitoring excisable products.
Similarly, the 1,878.65 liters of alcoholic beverages recorded in the enforcement results underline the need for consistent oversight of products that are subject to specific excise rules.
The Rp4.61 billion estimated value of the goods provides an indication of the commercial scale involved. The Rp2.13 billion in potential state revenue losses prevented, meanwhile, illustrates the fiscal importance of enforcement.
However, the two figures measure different things. The estimated value of seized goods is not the same as the amount of tax revenue recovered or the total financial value of the enforcement program. The potential loss figure refers to state revenue that authorities estimate was protected through the actions.
Ultimum Remedium: Recovering State Revenue Through Legal Settlement
76 cases resolved through the mechanism
Alongside direct enforcement, the Regional Office of Special Customs for Papua has also been using a legal settlement mechanism known as Ultimum Remedium (UR).
By the end of September 2026, the office had recorded 76 cases resolved through this mechanism, with a reported settlement value of Rp4.52 billion. The cases involved 1,892,278 tobacco sticks.
Ultimum remedium is a legal principle under which criminal sanctions are treated as a last resort in circumstances permitted by law. In the context of excise administration, the mechanism provides a route for resolving eligible violations through the fulfillment of specified legal and financial obligations.
The approach does not mean that violations are ignored or that enforcement has been abandoned. Rather, it allows authorities to pursue state revenue recovery and encourage compliance through a process established under the applicable regulations.
Encep emphasized that the mechanism must continue to operate within the law and should not be interpreted as an exemption from accountability.
“Melalui Ultimum Remedium, kami mendorong pemulihan hak negara sekaligus membangun kesadaran pelaku usaha untuk lebih patuh. Penegakan aturan tetap menjadi prioritas, dengan memastikan setiap penyelesaian dilakukan sesuai persyaratan hukum yang berlaku,” he said.
His explanation highlights the balance customs authorities seek to maintain between enforcement and legal resolution. Where a case meets the required conditions, settlement can help recover state revenue while giving businesses an opportunity to fulfill their obligations.
The distinction is important. Ultimum Remedium is not an automatic alternative available to every violator. Its application depends on legal eligibility and compliance with the relevant requirements.
A sharp increase during the third quarter
The performance of the UR mechanism became particularly visible during the third quarter of 2026.
According to the Regional Office of Special Customs for Papua, the value of UR settlements during the third quarter reached Rp4,251.78 million, equivalent to approximately Rp4.25 billion.
The figure represented year-on-year growth of 1,461.45 percent compared to the same period in 2025.
The increase indicates a substantial expansion in the reported value of cases resolved through the mechanism. It also demonstrates the growing role of legal settlement in efforts to recover state revenue from excise-related violations.
Nevertheless, the figure should be understood in its proper context. It refers to the value of UR settlements during the third quarter, not the total value of all goods seized during the January-to-September enforcement period. Nor does the reported growth rate by itself establish that the number of violations increased by the same percentage.
The distinction matters when evaluating customs performance. Direct enforcement, the estimated value of seized goods, potential revenue losses prevented, and the value of legal settlements are different indicators. Considered together, however, they provide a broader picture of how customs authorities are addressing illegal excisable goods.
Protecting State Revenue and Fair Business Competition
Enforcement supports legitimate businesses
The impact of illegal excisable goods is not limited to government finances. It can also affect businesses that follow the rules.
Companies and distributors operating legally must meet their fiscal and administrative obligations. When competing products circulate without meeting the same requirements, compliant businesses may be disadvantaged.
This can create pressure on legitimate operators and weaken confidence in the regulatory system. Consistent enforcement helps reduce that imbalance by ensuring that businesses are subject to the same basic requirements.
Encep said customs supervision was intended not only to protect state revenue but also to create fairer competition and protect the public from products that do not meet regulatory requirements.
This approach is particularly relevant to Papua’s economic development. The region’s commercial activity depends on reliable distribution networks, local businesses, and connections with markets elsewhere in Indonesia and the wider Pacific region.
A predictable regulatory environment can help legitimate businesses operate with greater confidence. It also provides a clearer framework for distributors and retailers seeking to expand their operations without facing unfair competition from illegal products.
Consumer protection and regulatory certainty
Customs enforcement also has a consumer protection dimension.
Products distributed outside official channels may not provide the same level of traceability and regulatory assurance as goods circulating through compliant supply chains. Effective monitoring helps authorities identify products that do not meet legal requirements and prevent them from reaching consumers.
This does not mean that every product seized in a customs operation has been independently established to pose a direct health risk. Rather, the central concern is that goods must comply with the applicable rules governing their circulation.
By removing non-compliant products from the market and pursuing appropriate legal action, authorities can strengthen regulatory certainty for both consumers and businesses.
The enforcement results reported in Papua therefore form part of a wider effort to maintain confidence in Indonesia’s excise system.
The Next Challenge: Sustaining Oversight Across Papua
The 149 enforcement actions recorded during the first nine months of 2026 provide an indication of the work undertaken by customs officers across Papua. Yet the continued circulation of illegal excisable goods means that supervision cannot be treated as a one-off campaign.
Authorities will need to maintain consistent monitoring, strengthen cooperation with other relevant institutions, and encourage businesses to understand their legal obligations.
The geographical conditions of Papua also make effective coordination important. Commercial distribution takes place across different population centers and transport connections, requiring enforcement agencies to adapt their monitoring activities to local circumstances.
Cooperation with regional administrations, law enforcement agencies, business associations, and community stakeholders can help improve the flow of information about suspected violations. Public awareness is equally important, particularly among retailers and distributors who may be unfamiliar with the documentation and excise requirements governing particular products.
The use of Ultimum Remedium also needs to remain transparent and consistent with the law. Its effectiveness should be assessed through the recovery of state revenue, improved business compliance, and the ability of authorities to ensure that eligible cases are resolved properly.
For customs officials, the objective is not simply to increase the number of enforcement actions. It is to reduce the circulation of illegal goods, protect legitimate economic activity, and ensure that the state receives revenue owed under the law.
A Stronger Customs System for Papua’s Economy
The results reported by the Regional Office of Special Customs for Papua show how enforcement and legal settlement can work together in protecting state finances.
The 149 enforcement actions from January to September 2026 involved approximately 2.47 million tobacco sticks and 1,878.65 liters of alcoholic beverages, with an estimated goods value of Rp4.61 billion and Rp2.13 billion in potential state revenue losses prevented.
At the same time, the 76 cases handled through Ultimum Remedium produced a reported settlement value of Rp4.52 billion, demonstrating the role of lawful financial recovery in strengthening compliance.
These achievements are important, but their longer-term value will depend on whether enforcement can produce lasting changes in market behavior. Businesses must understand that compliance is part of operating legally, while consumers should be able to trust that products circulating in the market meet the applicable requirements.
For Papua, stronger customs supervision is therefore closely connected to broader economic governance. Protecting state revenue, maintaining fair competition, and improving regulatory certainty can help create a more reliable environment for legitimate trade and investment.
As Encep Dudi Ginanjar has made clear, customs supervision will continue to be strengthened. The next measure of success will be whether these efforts prevent financial losses and make illegal excisable goods increasingly difficult to circulate across Papua.
Conclusion
Papua Customs’ 149 enforcement actions demonstrate the importance of sustained government oversight in protecting state revenue, maintaining fair business competition, and preventing the circulation of illegal excisable goods. Authorities are pursuing an approach that combines firm enforcement with efforts to encourage business compliance by seizing illegal tobacco and alcoholic beverages and lawfully applying the Ultimum Remedium mechanism. Ultimately, the effectiveness of these measures will depend on their ability to reduce illegal distribution, strengthen compliance among businesses, and create a fairer, more transparent trading environment across Papua.
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