Juridical analysis of law enforcement on illegal cigarettes in Batam and its impact on state excise revenue

https://doi.org/10.35912/dpd.v5i1.3394
Published: Aug 28, 2025

Abstract:

Purpose: Analyze law enforcement against illicit cigarettes with counterfeit excise bands in Batam and its impact on excise revenue, framed by Radbruch’s legal certainty, Friedman’s legal system, and Becker’s economics of crime.

Research methodology: A normative–empirical legal approach: review of excise laws and implementing regulations; a case study of KPU BC Batam operations (sea/land patrols, risk-based intelligence); semi-structured interviews with officers; and qualitative analysis of enforcement documents.

Results: Enforcement produced sizable seizures and a clear typology of illicit excisable goods (without bands/counterfeit), yet constraints persist: limited personnel and assets, a vast surveillance area, and increasingly sophisticated modus operandi. Regulatory gaps channel many cases into administrative settlement (state-asset confiscation) with weak deterrence; inter-agency coordination remains uneven; and permissive social norms toward cheaper prices endure. The main impacts are excise revenue leakage, unfair competition for compliant firms, and erosion of tobacco-control objectives.

Conclusions: Legal certainty is not yet achieved due to sanction disparities and inconsistent enforcement; economically, offenders’ expected gains exceed expected penalties. Stronger, predictable, and deterrence-oriented enforcement is required.

Limitations: Evidence is confined to Batam and specific periods; there is no econometric estimate of revenue loss; findings rely on interviews and secondary documents.

Contribution: Integrates legal theory and policy analysis by proposing tighter norms and recalibrated criminal–administrative sanctions, clarified procedures, deeper inter-agency integration, deployment of digital track-and-trace for excise bands, and public education to curb demand, restore the revenue base, and protect fair competition.

Keywords:
1. Counterfeit Excise Stamps
2. Customs and Excise
3. Illegal Cigarettes
4. Law Enforcement
5. State Revenue
Authors:
1 . Muhammad Yadi
Batam University, Batam, Kepulauan Riau, Indonesia
2 . Fadlan Fadlan
Batam University, Batam, Kepulauan Riau, Indonesia
3 . Parameshwara Parameshwara
Batam University, Batam, Kepulauan Riau, Indonesia
4 . Soerya Respationo
Batam University, Batam, Kepulauan Riau, Indonesia
5 . Siti Nurkhotijah
Batam University, Batam, Kepulauan Riau, Indonesia
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How to Cite
Yadi, M., Fadlan, F., Parameshwara, P., Respationo, S., & Nurkhotijah, S. (2025). Juridical analysis of law enforcement on illegal cigarettes in Batam and its impact on state excise revenue. Dynamics of Politics and Democracy, 5(1), 11–19. https://doi.org/10.35912/dpd.v5i1.3394
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Issue & Section
Vol. 5 No. 1 (2025): August
Articles
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    Parameshwara, & Riza, K. (2023). Tindak Pidana Korupsi dalam Konteks Pertanggungjawaban Pidana Korporasi. Jurnal Studi Multidisiplin Ilmu, 1(1), 25-34. doi:https://doi.org/10.35912/jasmi.v1i1.1973

    Respationo, S. (2024). The Mayor of Batam Ex-Officio as Head of the Batam Concession Agency: Cross-Jurisdictional Authority and Legal Problems. Pena Justisia: Media Komunikasi dan Kajian Hukum, 23(1), 539-553. doi:https://doi.org/10.31941/pj.v23i1.3591

    Sihombing, Y. M., & Ismaidar, I. (2023). Politik Hukum dalam Penegakan Hukuman Mati Terhadap Pelaku Peredaran Narkotika di Indonesia. Innovative: Journal Of Social Science Research, 3(6), 9810-9820. doi:https://doi.org/10.31004/innovative.v3i6.7719

    Suprihanti, A., Harianto, H., Sinaga, B. M., & Kustiari, R. (2018). The Impact of Cigarette Excise Tax Policy on Tobacco Market and Clove Market in Indonesia. International Journal of Economics and Financial Issues, 8(6), 54-60.

    Suyatno. (2023). Kelemahan Teori Sistem Hukum Menurut Lawrence M. Friedman Dalam Hukum Indonesia. IUS FACTI: Jurnal Berkala Fakultas Hukum Universitas Bung Karno, 2(1), 197-205. doi:http://dx.doi.org/10.61802/if.v2i1%20Juni.447

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    Undang-undang (UU) Nomor 7 Tahun 2021 tentang Harmonisasi Peraturan Perpajakan

    Undang-undang (UU) Nomor 17 Tahun 2006 tentang Perubahan atas Undang-Undang Nomor 10 Tahun 1995 tentang Kepabeanan.

    Undang-undang (UU) Nomor 39 Tahun 2007 tentang Perubahan atas Undang-Undang Nomor 11 Tahun 1995 tentang Cukai.

  1. Ahsan, A., Rahmayanti, K. P., Amalia, N., Veruswati, M., Prabandari, Y. S., Martini, S., . . . Diniary, A. (2024). Evaluation of Tobacco Tax Funding to Eradicate Illicit Cigarettes in Indonesia: A Qualitative Approach. Asian Pacific Journal of Cancer Prevention: APJCP, 25(8), 2885-2893. doi:https://doi.org/10.31557/APJCP.2024.25.8.2885
  2. Angkasa, Wamafma, F., Juanda, O., & Nunna, B. P. (2023). Illegal Online Loans in Indonesia: Between the Law Enforcement and Protection of Victim. Lex Scientia Law Review, 7(1), 119-178. doi:https://doi.org/10.15294/lesrev.v7i1.67558
  3. Aulana, M. S., Salsabila, A., Hardini, F. D., Aji, A. W., & Putra, A. A. (2025). Kegagalan Sistem Perpajakan dalam Menekan Peredaran Rokok Ilegal di Indonesia. Jurnal Ilmiah Bisnis dan Perpajakan (Bijak), 7(1), 71-79. doi:https://doi.org/10.26905/j.bijak.v7i1.15051
  4. Becker, G. S. (1968). Crime and Punishment: An Economic Approach. Journal of political economy, 76(2), 169-217. doi:https://doi.org/10.1086/259394
  5. Bulkiah, Syahbandir, M., & Yani, T. A. (2022). Pengaturan Objek Barang Kena Cukai dalam Perspektif Negara Kesejahteraan. Jurnal LITIGASI, 23(1), 1-20. doi:https://doi.org/10.23969/litigasi.v23i1.4233
  6. Fadlan. (2019). Government Policy Regarding Building Permits in Indonesia. International Journal of Research Culture Society, 3(11), 150-154. doi:https://ijrcs.org/wp-content/uploads/IJRCS201911028.pdf
  7. Fadlan, & Apridony. (2024). Normative Examination of the Considerations of Pre-Trial Judge on Distortion of the Value of the Instruments of Evidence. JPPI (Jurnal Penelitian Pendidikan Indonesia), 10(3), 551-563. doi:https://doi.org/10.29210/020242836
  8. Hermawan, A. V. P. A. (2025). Criminal Liability of Illegal Cigarette Distributors in Indonesia: A Criminal Law Review. Teraju: Jurnal Syariah dan Hukum, 7(1), 103-122. doi:https://doi.org/10.35961/teraju.v7i01.1892
  9. Julyano, M., & Sulistyawan, A. Y. (2019). Pemahaman Terhadap Asas Kepastian Hukum Melalui Konstruksi Penalaran Positivisme Hukum. Crepido, 1(1), 13-22. doi:https://doi.org/10.14710/crepido.1.1.13-22
  10. Kasri, R. A., Ahsan, A., Wiyono, N. H., Jacinda, A. R., & Kusuma, D. (2021). New Evidence of Illicit Cigarette Consumption and Government Revenue Loss in Indonesia. Tobacco Induced Diseases, 19, 1-8. doi:https://doi.org/10.18332/tid/142778
  11. Maulani, D. G., & Tamza, F. B. (2025). Kajian Hukum terhadap Tindak Pidana Peredaran Rokok Ilegal di Provinsi Lampung. Hukum Inovatif: Jurnal Ilmu Hukum Sosial dan Humaniora, 2(1), 302-311. doi:https://doi.org/10.62383/humif.v2i1.1185
  12. Mufti, A., & Limatahu, M. (2022). Optimization of Maluku's Directorate General of Customs and Excise’s Supervision Function in the Archipelagic Regions for Excited Goods Circulation. Cepalo, 6(1), 1-12. doi:https://doi.org/10.25041/cepalo.v6no1.2580
  13. Nazar, G. P., Sharma, N., Chugh, A., Abdullah, S., Lina, S., Mdege, N. D., . . . Arora, M. (2021). Impact of Tobacco Price and Taxation on Affordability and Consumption of Tobacco Products in the South-East Asia Region: A Systematic Review. Tobacco Induced Diseases, 19, 1-17. doi:https://doi.org/10.18332/tid/143179
  14. Nurzeha, S. Y., & Nashrullah, M. F. (2024). Legal Problems of Cigarette Excise Enforcement in Province East Java. Et-Tijarie: Jurnal Hukum dan Bisnis Syariah, 9(1), 48-64. doi:https://doi.org/10.21107/ete.v9i1.27226
  15. Panjaitan, C. J. (2022). Tindak Pidana Menjual Barang Kena Cukai yang Tidak Dilekati Pita Cukai dalam Perspektif Undang-Undang Nomor 39 tahun 2007 Tentang Cukai (Analisis Putusan Nomor 18/Pid.Sus.2020/PN.Mdn). Jurnal Hukum Kaidah: Media Komunikasi Dan Informasi Hukum Dan Masyarakat, 21(2), 279-311. doi:https://doi.org/10.30743/jhk.v21i2.4794
  16. Parameshwara. (2023). Legal Implications of Placement Illegal Indonesian Migrants. Journal of Multidisciplinary Academic and Practice Studies, 1(3), 241-248. doi:https://doi.org/10.35912/jomaps.v1i3.1580
  17. Parameshwara, & Riza, K. (2023). Tindak Pidana Korupsi dalam Konteks Pertanggungjawaban Pidana Korporasi. Jurnal Studi Multidisiplin Ilmu, 1(1), 25-34. doi:https://doi.org/10.35912/jasmi.v1i1.1973
  18. Respationo, S. (2024). The Mayor of Batam Ex-Officio as Head of the Batam Concession Agency: Cross-Jurisdictional Authority and Legal Problems. Pena Justisia: Media Komunikasi dan Kajian Hukum, 23(1), 539-553. doi:https://doi.org/10.31941/pj.v23i1.3591
  19. Sihombing, Y. M., & Ismaidar, I. (2023). Politik Hukum dalam Penegakan Hukuman Mati Terhadap Pelaku Peredaran Narkotika di Indonesia. Innovative: Journal Of Social Science Research, 3(6), 9810-9820. doi:https://doi.org/10.31004/innovative.v3i6.7719
  20. Suprihanti, A., Harianto, H., Sinaga, B. M., & Kustiari, R. (2018). The Impact of Cigarette Excise Tax Policy on Tobacco Market and Clove Market in Indonesia. International Journal of Economics and Financial Issues, 8(6), 54-60.
  21. Suyatno. (2023). Kelemahan Teori Sistem Hukum Menurut Lawrence M. Friedman Dalam Hukum Indonesia. IUS FACTI: Jurnal Berkala Fakultas Hukum Universitas Bung Karno, 2(1), 197-205. doi:http://dx.doi.org/10.61802/if.v2i1%20Juni.447
  22. Tampub, C. A. H. S., Sukarja, D., & Azwar, T. K. D. (2024). Cigarette Excise: Between State Revenue and Global Demands. Jurnal Hukum Sehasen, 10(1), 31-38. doi:https://doi.org/10.37676/jhs.v10i1.5488
  23. Undang-undang (UU) Nomor 7 Tahun 2021 tentang Harmonisasi Peraturan Perpajakan
  24. Undang-undang (UU) Nomor 17 Tahun 2006 tentang Perubahan atas Undang-Undang Nomor 10 Tahun 1995 tentang Kepabeanan.
  25. Undang-undang (UU) Nomor 39 Tahun 2007 tentang Perubahan atas Undang-Undang Nomor 11 Tahun 1995 tentang Cukai.