The Indonesian Attorney General’s Office ordered the detention of two tax officials after uncovering their acceptance of bribes from the major pulp company Toba Pulp Lestari, facilitating underreporting of export values for over a decade, causing massive state revenue losses exceeding 2 trillion rupiah, or about 3.7 billion baht.
The Indonesian Attorney General’s Office (AGO) charged two tax department officials in a corruption case involving the undervaluation of pulp exports by Toba Pulp Lestari (PT TPL), accused of causing state revenue losses estimated at around 2 trillion rupiah, approximately 3.7 billion baht.
Saiful Bahri Siregar, Director of Investigations at the Special Crimes Unit of the Indonesian AGO, revealed that PT TPL, operating in pulp processing and forestry, is accused of exporting pulp products to affiliated companies by declaring prices below actual value to reduce tax calculations.
The prosecutors' report states that PT TPL began undervaluing export prices from 2008 to 2025 by changing customs tariff codes (HS Codes), declaring exports to affiliates as ordinary paper grade pulp with lower prices, whereas in reality the exports were special chemical pulp (Dissolving Pulp) with significantly higher market value; domestic sales were reported accurately. This caused a substantial decrease in corporate income tax revenues due to the state.
Prosecutors noted the misconduct occurred from 2018 to 2025, while domestic sales were reported truthfully, with products declared as Dissolving Pulp under the name High Alfa Pulp, raising concerns over discrepancies between export and domestic reporting.
The two suspects are identified by initials BP and SR; BP served as the lead tax auditor responsible for the company in the 2020 and 2023 fiscal years, while SR was responsible for auditing in the 2024 fiscal year.
The prosecutors allege that both officials neglected their supervisory duties, failed to verify audit documents, and did not align their audit reports with established plans. Additionally, they are accused of accepting payments from the company to facilitate favorable audits.
However, the Indonesian Attorney General’s Office has not yet formally charged Toba Pulp Lestari itself, and the company has not commented on the allegations.
Prosecutors estimate initial state losses at approximately 2 trillion rupiah but note this figure is preliminary, as officials continue detailed investigations and financial damage assessments.
BP and SR have been detained for 20 days starting 12 August at the Salemba Detention Center, under the Indonesian AGO branch, for further investigation.
The suspects face charges under Indonesia’s criminal code and anti-corruption laws, with main offenses punishable by up to life imprisonment; prosecutors have also filed secondary charges under other criminal code provisions.
This case is among several under Indonesian authorities’ scrutiny involving undervaluation of export goods, potentially impacting tax collection and state revenues, with final findings to determine actual losses and responsibility.
/sourceReuters/Kompas.com/CNN Indonesia