KPK Raids Djarum and Kudus Customs Offices, New Signal in Excise Corruption Probe

The Corruption Eradication Commission (KPK) raided the headquarters of PT Djarum in Kudus, Central Java, and the Kudus Type Madya Customs Supervision and Service Office (KPPBC) on Wednesday (28/10). The raids mark a new phase in the investigation into alleged corruption involving state revenue from the excise sector, with investigators seizing a number of documents and electronic evidence.

KPK spokesperson Budi Prasetyo said the raids were still ongoing as of Wednesday night. According to him, the case is a development of a case uncovered last February within the Directorate General of Customs and Excise. Investigators then issued a new investigation order (sprindik) this October. “The raids are still ongoing, and among the items secured are documents and electronic evidence, as this case is suspected to relate to state revenue from the excise sector,” Budi said at the KPK's Red and White Building in Jakarta.

In this investigation, the KPK is using a general sprindik, meaning no suspect has been named yet and suspects will be determined as the process unfolds. Budi added that investigators will examine a number of parties and witnesses in stages. “Everything will certainly be staged, processed, the raids, and then there will be examination activities for the parties or witnesses,” he explained.

PT Djarum, through Group Corporate Communication Senior Manager Budi Darmawan, stated that the company respects and obeys the law and will cooperate to help resolve the case. “We respect and obey the law. Cooperative,” Budi Darmawan said when contacted on Wednesday (28/10).

Budi Prasetyo also said investigators will look into the alleged kickback scheme, or payments from PT Djarum to individuals at Customs and Excise. “The excise stamps used to be affixed to each cigarette pack, or then there are other moduses, but what is certain is that the initial suspicion in this case relates to state revenue related to excise at PT Djarum,” he said.

Previously, the KPK had issued two new sprindiks related to alleged corruption at Customs and Excise. One sprindik named Gatot Heroe Hernanda, Head of the Kediri Supervision and Service Office (KPP), as a suspect. The other sprindik has not named a suspect. Based on facts presented at trial, KPK prosecutors believe Blueray Cargo (Group) owner John Field and his subordinates, Dedy Kurniawan Sukolo and Andri, were proven to have bribed a number of officials at the Directorate General of Customs and Excise so that Blueray Cargo (Group)'s imported goods would exit the customs supervision process more quickly. The trial also surfaced names of people suspected of also receiving money but who have not been prosecuted, including Ahmad Dedi alias Dedi Congor, who was said to have received Rp30 miliar, and Director General of Customs and Excise Djaka Budhi Utama, who was alleged to have received Rp21 miliar.

The raid on the office of Djarum, one of Indonesia's largest cigarette producers, has drawn public attention. The case could become a test for law enforcement in the excise sector, which has long been one of the country's significant sources of state revenue. If the alleged kickbacks are proven, this would not only harm state finances but also tarnish the governance of the national cigarette industry. The KPK needs to work quickly and transparently to uncover everyone involved, including possible new suspects from the private sector.

Going forward, investigators will continue to gather evidence and examine witnesses. The public is waiting to see whether this case will expose a wider corruption network at Customs and Excise and how it will affect the investment climate and corporate compliance with excise rules. The big question: will this round of law enforcement truly reach the main actors, or will it again stop at the operational level?