The government has issued Regulation (PP) 54/2023 regarding the implementation of the Ultimum

Remedium principle in the field of excise during the investigation phase. With this principle, the
investigation process can be halted after the party involved pays an administrative sanction in the
form of a fine.

Nirwala Dwi Heryanto, Director of Communication and User Guidance at the Directorate General of
Customs and Excise (DJBC), stated that the application of the ultimum remedium principle for
criminal violations in the excise field aims to create a more objective restorative justice. He explained
that imagine having to investigate and take to court 2 cartons of illegal cigarettes; the cost for law
enforcement and the losses caused by the criminal act may not be balanced. That's why restorative
justice is needed.

Nirwala mentioned that PP 54/2023 was issued as an implementing regulation of the Harmonization
of Tax Regulations Law (HPP). The Minister of Finance, Attorney General, or appointed officials can
stop the investigation of excise-related crimes for a maximum period of 6 months from the date of
the request letter.

The cessation of the investigation is only applicable to crimes under Article 50, Article 54, Article 56,
and Article 58 of the Excise Law pursuant to the HPP Law. These articles are related to licensing
violations, the release of excise goods, non-packaged excise goods, excise goods originating from
criminal acts, and the sale of excise ribbons.

The investigation is halted after the party involved pays an administrative sanction in the form of a
fine, amounting to 4 times the value of the excise that should have been paid.

If applying for the cessation of the investigation, the suspect needs to submit a request to the
Minister or appointed official. Once the request is received, the Minister or appointed official will
conduct an examination to ensure the violated criminal act and the fine to be paid.

If the examination results meet the criteria for stopping the investigation, the Minister or appointed
official will issue an approval letter for the request to cease the investigation. This letter will specify
the amount of the fine to be paid and the deadline for payment.

The suspect must then pay the administrative sanction, as defined in Article 4 Paragraph (2) of PP
54/2023, to the government account determined by the Minister or appointed official. After making
the payment, the suspect needs to provide proof of payment of the fine along with a statement of
guilt acknowledgment to the Minister or appointed official.
Upon receiving this proof of payment, the Minister or appointed official will submit a request to stop
the investigation to the Attorney General or appointed official within a maximum period of 5 days.

Based on the request to stop the investigation, the Attorney General or appointed official will
conduct an examination to determine the fulfilment of the provisions of Article 2 Paragraph (2) of PP
54/2023 and the completeness of documents.

If both conditions are met, the Attorney General or appointed official will decide to stop the
investigation of excise-related crimes for the benefit of state revenue.

Further provisions regarding the procedures for applying for the cessation of the investigation of
excise-related crimes, payment of fines, and requests for the cessation of the investigation will be
regulated in more detail in the Ministry of Finance Regulation (PMK). The procedures for stopping
the investigation will be further regulated in the prosecutor's regulations.

Previously, the Ministry of Finance also issued PMK 237/2022, containing technical provisions for the
ultimum remedium principle against violations in the excise field during the investigation stage.
Research results that do not lead to investigations require perpetrators to pay an administrative
sanction in the form of a fine, amounting to 3 times the amount of excise that should have been
paid.