Purbaya Conducts Surprise Inspection at Chinese Steel Company in\nJakarta<\/p>\n
Jakarta. Finance Minister Purbaya Yudhi Sadewa carried out a surprise\ninspection of a Chinese-owned steel company in Jakarta on Thursday as\nthe government steps up efforts to improve tax compliance and ensure\nfair competition in the country\u2019s steel industry.<\/p>\n
Purbaya visited the company\u2019s facility in the Pulogadung industrial\nestate after authorities identified preliminary indications that the\nscale of its business activities may not fully align with its reported\ntax obligations.<\/p>\n
The government stressed that the move was intended to improve\ncompliance rather than discourage investment.<\/p>\n
\u201cWe want to ensure that all companies operating in Indonesia conduct\ntheir business activities in accordance with applicable regulations,\u201d\nPurbaya said during the visit. \u201cOur objective is not to hamper or shut\ndown businesses, but to ensure healthy and fair competition for all\nindustry players.\u201d<\/p>\n
Officials said government data raised concerns that the taxes paid by\nthe company may not accurately reflect the scale of its operations.\nAuthorities have requested documents and supporting records to verify\nthe findings.<\/p>\n
Purbaya emphasized that the review remains at the clarification stage\nand that authorities have not concluded whether any violations\noccurred.<\/p>\n
\u201cWe have asked the company to provide relevant documents so that the\nprocess can be conducted transparently and based on facts,\u201d he said.<\/p>\n
The company told officials that its operations comply with Indonesian\nregulations and pledged to cooperate with the ongoing review.<\/p>\n
The inspection comes as Indonesia seeks to improve tax collection and\nstrengthen oversight of major industries. Indonesia has one of the\nlowest tax-to-GDP ratios among major economies in Southeast Asia. The\ngovernment is targeting a tax ratio of 10.48% in 2026, while neighboring\neconomies generally collect substantially more tax revenue relative to\nthe size of their economies.<\/p>\n
The government has set a tax revenue target of between Rp 2,357.7\ntrillion ($132 billion) and Rp 2,693.7 trillion for 2026 as it seeks to\nstrengthen fiscal capacity while financing President Prabowo Subianto\u2019s\npolicy agenda.<\/p>\n
The steel industry has become increasingly important to Indonesia\u2019s\nindustrial ambitions. National steel consumption is projected to reach\n19.3 million metric tons in 2025, up 3.8% from the previous year, driven\nprimarily by demand from the construction sector. Despite growing\ndomestic demand, around 55% of Indonesia\u2019s steel supply still relies on\nimports.<\/p>\n
The Finance Ministry said similar inspections may be carried out at\nother companies based on government monitoring and data analysis.<\/p>\n
Officials described the initiative as part of efforts to establish a\nlevel playing field across industries by ensuring that all businesses\nmeet their tax obligations and comply with regulations.<\/p>\n
\u201cThe government wants to ensure that every company has an equal\nopportunity to grow,\u201d Purbaya said. \u201cTherefore, all businesses must\nfulfill their obligations fairly and in accordance with the rules so\nthat national industries can develop in a healthy and sustainable\nmanner.\u201d<\/p>\n
The ministry did not identify the company involved in Thursday\u2019s\ninspection or disclose the potential value of any tax discrepancies\nunder review.<\/p>\n
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