The Monday night raid on street stalls and shops selling the items followed a fatwa, or decree, by the clerical Ulema Consultative Assembly that said New Year's celebrations or wishing someone "Merry Christmas" was "haram" (forbidden) in the city of Banda Aceh.
The Banda Aceh government backed the fatwa by banning New Year's Eve celebrations in the city.
"This public-order operation ahead of New Year's Eve is to ensure residents are compliant with calls from the government and ulema," a senior Banda Aceh sharia police official Reza Kamilin told AFP.
"There should be no activity whatsoever to celebrate the turn of the year," Kamilin said.
The city ban is not technically legally binding but is being enforced by sharia police, whose role it is to "safeguard" morality.
Banda Aceh is the capital of Aceh province - the only part of Indonesia that enforces Islamic law, or sharia - where raids to enforce religious law are an everyday occurrence.
But this year is the first for any administration in the province to ban New Year's Eve celebrations, in a sign of growing draconianism that rights groups oppose.
Sharia police will also conduct raids on hotels and cafes, which have been warned not to celebrate the day, Kamilin said.
"We will dissolve any mass gatherings. If anyone is seen with firecrackers or trumpets, we will confiscate them," he said.
Other administrations in Aceh were reportedly also banning celebrations, saying Muslims should only celebrate the Islamic New Year.
Aceh began implementing sharia law after it was granted special autonomy in 2001. Authorities now regularly cane people caught gambling or drinking alcohol.
Indonesia is the world's biggest Muslim-majority nation, but most practise a moderate form of Islam, and New Year's Eve festivities are planned all over the country.
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Sadly, New Year celebrations have become nothing more than a festival of drinking, drugging, rock and roll and sex. It's good to see that some people have rejected Westernisation and don't want foreign culture to corrupt their way of living.
New Year Celebration should not ban forcefully... This is not justice!
MashaAllah, great rulers!!! Prospering economically in this world; and furthermore, in hereafter insha Allah.