Indonesia names 2 tax officers as suspects in $143m pulp under-invoicing case

JAKARTA — Indonesia's Attorney General's Office (AGO) has accused two tax officers of accepting bribes from a listed pulp producer to facilitate under-invoicing, causing state losses of around two trillion rupiah ($111.95 million), an official said.

The under-invoicing by the company, Toba Pulp Lestari, allegedly took place between 2008 and 2025, Saiful Bahri Siregar, director of investigations at AGO's special crimes unit, told reporters late on Wednesday (Aug 12).

The company, which is involved in the pulp processing and forestry industry, is alleged to have exported pulp products to its affiliate from 2008 using a harmonised system code with a lower value, which "resulted in a reduction in the corporate tax revenue that the state should have received", Siregar said.

 The prosecutors did not name the company as a suspect.

The two suspects, identified only by the initials of BP and SR, were tax audit supervisors for the company between 2020 and 2024, he added.

"The suspects, acting unlawfully, failed to carry out their duties and functions as supervisors... And the suspects have received a certain amount of money from the company," he said.

The company did not immediately respond to a request for comment.

The initial estimate of state losses was two trillion rupiah, Siregar said.

The suspects allegedly violated an anti-corruption clause in Indonesia's criminal code that carries a maximum sentence of life imprisonment.

[[nid:741644]]