Track And Trace System As A Supervisory Instrument For Illegal Cigarette Distribution In Indonesia

Abstract

The circulation of illegal cigarettes in Indonesia remains a critical issue due to its negative impact on state revenue losses, unfair business competition, and public health risks. Although Law Number 39 of 2007 on Excise and its implementing regulations have regulated the supervision of tobacco products, the existing supervisory mechanisms are still predominantly conventional and have not been fully adaptive to developments in distribution technology. This study aims to analyze the implementation of the track and trace system as an instrument for supervising the distribution of illegal cigarettes in Indonesia and to compare it with the application of a similar system in Turkey. The research method employed is normative legal research using statutory, conceptual, and comparative approaches. The findings indicate that Indonesia does not yet have specific regulations governing the standards, obligations, and operational mechanisms of a national track and trace system, resulting in limited effectiveness of supervision. In contrast, Turkey has successfully implemented an integrated Digital Tax Stamp system supported by a strong legal framework, technological infrastructure, and institutional coordination, significantly reducing the circulation of illegal cigarettes. This study concludes that the implementation of a track and trace system in Indonesia is an urgent necessity, requiring regulatory reformulation, strengthened institutional integration, and the development of technological infrastructure to enhance the effectiveness of supervision over the distribution of illegal cigarettes.