Cheap, untaxed brands like HD and OFO flood Kepri markets, raising health and revenue concerns.

Illegal cigarettes continue to saturate Bintan and Tanjungpinang, with brands like HD, OFO, and Hmild dominating local stalls and coffee shops. Despite enforcement efforts, poor regulation and low prices keep demand strong among lower-income smokers.

Illicit Tobacco Floods Local Markets

In both Bintan and Tanjungpinang, illegal cigarettes—those lacking excise tax stamps—have become a common sight. From roadside warungs in Batu 16, Toapaya to kiosks in Batu 14 and 15 of Tanjungpinang, brands such as HD, OFO Bold, Hmild Jumbo, and Rave are widely sold under-the-counter. A brief observation revealed that within 10 minutes, three separate buyers purchased non-taxed brands, highlighting their popularity and accessibility.

Free Trade Zone Loopholes Enable Smuggling

Though Bintan and Tanjungpinang are within a designated Free Trade Zone (FTZ), tax-free privileges are supposed to apply only within certain enclaves like Dompak and Senggarang. Items transported outside these areas should be subject to duties. However, illegal distributors exploit the FTZ’s loose controls. According to local sources, these cigarettes often arrive via Batam using trucks and pickups, with distributors operating discreetly from places like Kijang and Batu 14.

Price Attractiveness Fuels Demand

The appeal of illegal cigarettes lies in their affordability:

• HD: IDR 11,000 (~SGD 0.88)
• OFO Bold: IDR 16,000 (~SGD 1.28)
• Hmild Bold (23 sticks): IDR 13,000 (~SGD 1.04)

Compared to legal brands that can cost double, non-cukai cigarettes offer an irresistible deal, especially for lower-income groups. As one resident, Z, shared, “As long as it smokes, taste doesn’t matter. It’s wallet-friendly.” This sentiment is echoed by Ardi, a regular HD smoker for the past three years, who admits his choice stems from economic limitations, despite knowing the legal risks.

Weak Enforcement Undermines Tax Revenues

Local authorities acknowledge the issue. Ade Novan, Tanjungpinang’s Head of Enforcement and Investigation (Kasi P2) at Bea Cukai, confirmed that non-taxed cigarettes remain widespread. From January to July 2025, customs seized 3.8 million sticks—almost double 2024’s full-year total of 2 million. While this reflects increased enforcement, it also indicates rising circulation. Yet, sellers remain unfazed, often brushing off questions with “we just sell, we don’t ask.”

Customs Struggles With Public Attitude

Despite ongoing raids and community outreach, illegal tobacco thrives because public participation in curbing the trade remains low. The customs office continues to educate vendors and residents, emphasizing that illegal tobacco harms not just health but national revenue. As Novan states, “As long as people keep buying, the supply won’t stop.” His message is clear: “Help us fight illegal cigarettes—stop buying them.”

Illegal cigarettes in Bintan and Tanjungpinang are more than a regulatory failure—they’re a public health and economic crisis. The ease of access, affordability, and lack of fear among sellers and consumers reflect a deeply rooted issue that stretches beyond borders. For neighboring regions like Singapore, which enforces strict tobacco regulations, the porous enforcement in Kepri raises broader regional concerns about smuggling, tax evasion, and cross-border illicit trade.

Sources: BintanToday.com (2025) , Tribun Batam (2025)

Keywords: Illegal Cigarette, Tobacco Tax Evasion, Bintan Free Trade, Non-Taxed Brands, HD Cigarette, OFO Bold