AGO Alleges PT TPL Manipulated Pulp Export Prices, State Losses Estimated at Rp2 Trillion
The Attorney General’s Office (Kejagung) has revealed the latest developments in its investigation into alleged transfer pricing corruption at PT TPL Tbk. Preliminary findings suggest the case has caused state financial losses reaching approximately Rp2 trillion. However, this figure is not yet the official state loss value. The AGO is still awaiting the calculation results from the auditor team currently compiling the examination report.
Director of Investigations for the Junior Attorney General for Special Crimes, Saiful Bahri, stated that the Rp2 trillion figure is a provisional result obtained by investigators while probing the PT TPL case. “The state financial loss in this case is still being calculated by the auditor team. Meanwhile, from our investigation, we have provisionally obtained a loss value of Rp2 trillion, and the official result will be provided later by the auditor team,” Saiful Bahri said at the AGO Round Building on Wednesday.
In investigating the case, the AGO suspects that the practices carried out by PT TPL relate to export transactions of pulp products to affiliated companies. PT TPL itself is a company operating in the pulp processing and forestry industry. Investigators suspect that from 2008 to 2025, there were pulp export sales to companies affiliated with PT TPL using an under-invoicing scheme.
The scheme was allegedly carried out by reporting products exported from Indonesia as paper-grade pulp or bleached hardwood kraft pulp (BHKP). However, based on the AGO’s provisional investigation results, the characteristics, uses, and market price of the product allegedly indicate that the goods being traded were dissolving pulp. “The export sales of pulp to its affiliates were carried out by under-invoicing, reporting them at the export stage from Indonesia as paper-grade pulp or bleached hardwood kraft pulp, or BHKP,” Saiful revealed. “Whereas in terms of characteristics, uses, and market price value, the product is a dissolving pulp product. Here the HS code has already changed,” he continued. To uncover the alleged transfer pricing corruption at PT TPL, investigators have examined a total of 111 witnesses.