BCW Coordinator, Jimmy Endey.

progresifjaya.co.id, JAKARTA – Bea Cukai Watch (BCW) is focusing on the transparency and accountability of state revenue derived from the tobacco excise sector. BCW plans to conduct a review of the excise administration chain over the past five years, covering everything from tobacco product manufacturing, the ordering and printing of excise stamps, and their distribution and usage, to state revenue collection and trends in the circulation of illegal cigarettes.

BCW Coordinator Jimmy Endey stated, that the review is necessary to provide the public with a more comprehensive picture of the relationship between legal tobacco production and the excise revenue entering the state treasury.

According to Jimmy, tobacco excise is a major source of state revenue. Therefore, transparency and the ability to reconcile data from upstream to downstream are crucial for maintaining public trust while ensuring that potential state revenue is safeguarded.

“This involves a significant amount of public funds. The public needs a clear picture: how much is legally produced, how many excise stamps are ordered and printed, how many are distributed and used, and how much ultimately becomes state revenue,” said Jimmy at the BCW secretariat on Jl. Saharjo 123, Jakarta, on Thursday, August 27, 2026.

BCW emphasized, that the review doesn’t stem from allegations of revenue leakage. Instead, the study aims to verify whether the entire chain of excise data can be transparently reconciled and accounted for.

“If all the data matches, it actually strengthens confidence in the system. However, if there are discrepancies or anomalies, we need to understand the causes. It could be due to legitimate administrative mechanisms or other factors. We shouldn’t speculate; we will test it against the data,” Jimmy said.

Legal Production Declines, Yet Excise Revenue Remains High

One issue drawing BCW’s attention is the downward trend in legal cigarette production observed over the past few years.  Data gathered from various publications indicate that legal cigarette production stood at approximately 334,8 billion sticks in 2021, subsequently trending downward to around 307,8 billion sticks by 2025.

At the same time, state excise revenue has consistently remained in the range of hundreds of trillions of rupiah annually.

According to BCW, this situation does not necessarily indicate a problem. Factors such as changes in excise rates, production structures, cigarette types, retail selling prices, and shifts in consumption patterns can all influence the relationship between production volume and revenue.

Nevertheless, this phenomenon is considered significant enough to warrant comprehensive analysis.

“The question is not merely why legal production has declined. We also need to ask: when legal production drops, where do consumers go? Does consumption actually decrease, or do consumers switch to cheaper legal products, other types of tobacco goods, e-cigarettes, or perhaps the illegal market?” said Jimmy.

BCW to Examine the Excise Stamp Chain

Another aspect drawing BCW’s attention is the management of excise stamps.

BCW plans to map out the entire excise stamp management chain, covering everything from demand planning, procurement and printing, and storage to industry ordering, distribution, usage, returns, and eventual destruction.

According to Jimmy, excise stamps hold a crucial position as they serve as both state security documents and instruments for the payment of excise duties.

Consequently, ensuring accountability for every printed stamp is a vital component of the state revenue oversight system.

“The simple question is: can every printed excise stamp be traced to its final status? How many were distributed, used, returned, and destroyed? If the data is transparent and reconcilable, the public will actually gain confidence that the oversight system is robust,” explained Jimmy.

BCW will also examine data on violations related to excise stamps, including the use of counterfeit stamps, reused stamps, stamps applied to the wrong products, and tobacco products lacking excise stamps.

Testing for Potential Leakage, Not Alleging It

BCW believes that potential state revenue leakage should be viewed as a fiscal risk requiring assessment, rather than a conclusion drawn before the data is even obtained.

The study aims to cross-reference various datasets that have historically been analyzed in isolation.

Legal production data will be compared against data on excise stamp orders and usage. Data on printed stamps will be reconciled with records of their distribution, usage, return, and destruction.

Furthermore, this data will be compared with Tobacco Product Excise (CHT) revenue figures and trends in enforcement actions against illegal products.

“BCW will not claim there is leakage simply because we find discrepancies in the figures. An anomaly is a question, not a verdict. We must seek an explanation from Customs, verify the facts, and only then draw a conclusion,” Jimmy emphasized.

According to BCW, this approach is crucial to ensure that public oversight remains critical without compromising objectivity or the presumption of innocence.

Beyond Cigarettes: Mapping Cigar Data Too

The BCW study will also disaggregate data by tobacco product type, including machine-made clove cigarettes (SKM), machine-made white cigarettes (SPM), hand-rolled clove cigarettes (SKT), cigars, leaf cigarettes, fine-cut tobacco, and other tobacco product categories.

Cigars are a particularly interesting category due to their distinct characteristics compared to standard cigarettes and their relatively lower production volumes.  BCW is considering using cigars as a sample case to determine whether data regarding a specific type of tobacco product can be fully traced—from the number of producers, production volumes, and excise stamps to excise payments and state revenue.

Requesting Official Customs Data

As part of the study, BCW plans to request official data from the Directorate General of Customs and Excise (DJBC) covering the 2021–2025 period.

This data includes production volumes by tobacco product type, the number of active producers, excise stamp orders, the quantity of stamps printed and distributed, actual usage, stamp returns and destruction, excise revenue, and enforcement data regarding illegal tobacco products.

All this data will be entered into the BCW Tobacco Excise Data Matrix (2021–2025) for subsequent reconciliation and analysis.

BCW also welcomes input—whether data or perspectives—from the DJBC, the industry, academics, economists, excise practitioners, and other stakeholders, ensuring the study does not view the issue from only one side.

Transparency to Protect State Revenue

Jimmy emphasized that the study’s goal is not to find fault with any specific institution, but rather to foster transparency and strengthen the oversight system for a strategic source of state revenue.

He noted that if the system is functioning well, an independent study could actually bolster public trust in the DJBC.

Conversely, if systemic loopholes are discovered, the study’s findings are expected to serve as a basis for improvements.

“BCW wants to view the entire chain: production, excise stamps, payment settlement, state revenue, and enforcement against illegal products. It all needs to be readable within a single, comprehensive picture,” he said.

“Every rupiah of state revenue must be accountable. If the system is transparent, the state is protected, the legal industry gains certainty, and the public can participate in oversight. If there is a potential for leakage, we close the gap. If the system is sound, we inform the public that it is indeed effective, based on the data,” he concluded. (Red)