“I have a list of 40 steel companies, and only one has been audited so far. We estimate there could be Rp4 trillion to 5 trillion in tax leakage,” Purbaya told reporters at the Finance Ministry’s office in Jakarta on Friday.
Purbaya said the move is part of the government’s tax extensification strategy to expand tax revenue by ensuring companies comply with their tax obligations.
For example, he said the potential tax revenue from a single company could reach Rp1 trillion over a three-year period.
The review includes income tax, value-added tax, and tax obligations related to import activities. Purbaya said the government’s handling of the issue has not yet been optimal, leaving room for improvement.
The audits are already underway with the Finance Ministry calculating outstanding tax liabilities and beginning the collection process, he said.
Purbaya is also reviewing internal practices at the Finance Ministry, saying the fact that some companies had operated for decades without being detected. He therefore suspects that some internal officials may have been involved in allowing such practices to continue.
“The fact that there are companies that have operated like that for decades without being detected means that someone was indeed involved,” he said.
Purbaya said he had identified several ministry employees suspected of misconduct and would impose sanctions if they were found to have violated regulations. Dismissal was among the possible penalties.
“Yes, in the near future (they will be placed on leave),” Purbaya said.
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Translator: Imamatul Silfia, Kuntum Khaira
Editor: Azis Kurmala
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