Indonesia's Attorney General's Office has accused two tax officers of accepting bribes from Toba Pulp Lestari to facilitate under-invoicing, causing state losses of around 2 trillion rupiah ($111.95 million). The alleged scheme occurred between 2008 and 2025.
The case highlights ongoing efforts to combat corruption and tax evasion in Indonesia, potentially impacting investor confidence in the country's pulp and forestry sector and signaling stricter enforcement of financial regulations.
Indonesia's Attorney General's Office (AGO) has accused two tax officers of accepting bribes from a listed pulp producer, Toba Pulp Lestari, to facilitate under-invoicing. This alleged scheme resulted in state losses of approximately 2 trillion rupiah ($111.95 million).
According to Saiful Bahri Siregar, director of investigations at AGO's special crimes unit, the under-invoicing allegedly took place between 2008 and 2025. The company, involved in the pulp processing and forestry industry, is accused of exporting pulp products to an affiliate using a harmonised system code with a lower value, which reduced corporate tax revenue for the state.
The prosecutors have not named the company as a suspect. The two suspects, identified by the initials BP and SR, served as tax audit supervisors for the company between 2020 and 2024. Siregar stated that the suspects unlawfully failed to carry out their duties and functions as supervisors and received money from the company.
The suspects allegedly violated an anti-corruption clause in Indonesia's criminal code, which carries a maximum sentence of life imprisonment. The company did not immediately respond to a request for comment.