A recent study conducted by the Gajah Mada University shows that Indonesia could lose up to Rp 300 billion (US$ 3.3 million) due to falsified cigarette excise this year.
“It means the excise revenue this year may decline by 1 percent,” Elan Satriawan, a university researcher, said Wednesday during a discussion on illegal cigarettes in Indonesia.
Elan added that Indonesia expects to net Rp 57 trillion from cigarette excise this year.
Researchers conducted the survey in 256 villages in 16 provinces, collecting 18,200 packets of cigarettes.
From the samples, researchers found most of illegal cigarettes were distributed in West Sulawesi.
However, the survey showed that the proportion of cigarettes that were illegal in Indonesia had declined to 6.24 percent from 8.5 percent last year.