Indonesia: Illegal Cigarette Factory in Semarang Shut down

Source from:  The Jakarta Post 07/07/2014

The Tanjung Emas Customs and Excise Office (KPPBC) in Semarang has raided and closed down an illegal cigarette factory in the Candi industrial zone in Semarang, Central Java.

"We raided the illegal cigarette factory on June 24. We also arrested the main suspect, known as GW. Right now he is being detained at the Kedung Pane Semarang Prison. From the statements we received from the witnesses, we now know that the factory had been in operation for the past one-and-a-half years," Tanjung Emas Semarang KPPBC chief Ardiyanto said on Friday.

In the raid, officers confiscated six cigarette manufacturing machines capable of producing 1,200 cigarettes per minute, one Daihatsu Luxio car, raw materials for cigarette making, mixed tobacco, cigarette paper, glue and filters. Furthermore, they also confiscated 99 cigarette cartons containing 1.58 million cigarettes and security camera equipment. 

The factory has produced an estimated 378 million cigarettes without paying taxes. Since the excise is Rp 245 (2 US cents) per cigarette, those illegal cigarettes lost the state Rp 92.61 billion in potential revenue, he said.

If found guilty, the suspect faces a maximum five years in prison and fines totaling 10 times the unpaid excise.

Tanjung Emas KPPBC head of investigation and enforcement Tutut Basuki added that GW received orders to produce specific brands of cigarettes. Enditem