Mindanao armed groups funded by smuggled Indonesian cigarettes

ARMED groups in Mindanao are financing their activities through smuggled cigarettes, mostly originating from Indonesia, a security expert said in a recent forum.

Prof. Rohan Gunaratna, a security studies instructor at Singapore’s Nanyang Technological University, identified the Abu Sayyaf Group (ASG) and the Moro National Liberation Front (MNLF) as among the beneficiaries of the illicit cigarette trade in southern Philippines.

“Indonesia is a key source for the cigarettes coming in,” Gunaratna said during a recent forum titled “Terrorism-Illicit Trade Nexus: A National Security Threat” at the PROTECT 2024 Conference at the New World Hotel in Makati. “The Philippines is not benefitting from this revenue, because the carriers are the groups who are not recognized entities or the government.”

Delegates in the forum discussed ongoing and emerging threats which also include current geopolitical risks, violent extremism, climate change, cybersecurity and other disruptive technologies.

Among those who attended the forum are key defense officials such as National Security Adviser Eduardo M. Año and Armed Forces Chief of Staff Gen. Romeo Brawner Jr., along with several officials of the Indonesian Embassy in Manila.

Gunaratna, who founded Singapore’s International Centre for Political Violence and Terrorism Research, cited Indonesian trade data showing cigarette exports to the Philippines reaching $137 million or nearly P8 billion in 2021. However, these exports are not reflected in official Philippine import data.

The smuggled brands are typically unregistered with the Bureau of Internal Revenue (BIR) and lack graphic health warnings, tax stamps and other regulatory compliance. Common brands found in Mindanao include Gudang Baru, Oakley, Souvenir, Cannon, Bravo, New Berlin, Fort and Astro, though the total number is believed to exceed 50.

These cigarettes, frequently seized by authorities in Mindanao provinces, are also openly sold in stores and markets despite lacking import records or evidence of excise tax payment.

Gunaratna identified Palawan, Zamboanga, Sulu and Tawi-Tawi as entry points for smuggled cigarettes from Indonesia and Malaysia, citing millions of pesos