Attorney General's Office Names Toba Pulp a Suspect in Alleged Transfer Pricing Case
Jakarta, CNBC Indonesia — The Attorney General’s Office (Kejagung) has named PT Toba Pulp Lestari Tbk (INRU) a corporate suspect in an alleged transfer pricing corruption case spanning 2008 to 2025.
Saiful Bahri Siregar, Director of Investigations at the Deputy Attorney General for Special Crimes, said TPL was proven to have committed an unlawful act in the form of under-invoicing by altering and manipulating the HS Code of the pulp it produced based on characteristics, use and transaction value.
“The product should have been dissolving pulp, but it was changed to paper grade pulp, or bleached hardwood kraft pulp (BHKP),” he said at a press conference, quoted by CNN Indonesia on Monday (7/9/2026).
He explained that the processed pulp was sold by TPL to Macau Marketing International Ltd abroad, as well as to Asia Pacific Rayon in Indonesia.
According to Saiful, TPL also failed to provide transfer pricing documentation (TP Doc) and its Corporate Tax Return (SPT) to the relevant tax office when a fairness-of-transaction-price examination was carried out.
“PT TPL Tbk unlawfully cooperated with authorised officials so that no supervision was conducted,” he explained.
In addition, Saiful said the review, KKP and LHP assessments were not based on the audit programme prepared by the state administrator or state official.
Through this collusion, the authorised officials allegedly did not compare prices against TPL’s TP Doc and corporate tax return.
As a result, TPL’s transfer pricing activities are said to have caused state financial losses of up to Rp2 trillion.
“Based on the investigation’s findings, the investigative team has today designated the corporation PT TPL Tbk as a suspect,” he concluded.
Previously, the Attorney General’s Office had named two officials from the Directorate General of Taxes at the Ministry of Finance as suspects in the alleged transfer pricing corruption case involving TPL between 2008 and 2025.
Kejagung said TPL carried out exports through under-invoicing, reporting its product as paper grade pulp or bleached hardwood kraft pulp (BHKP).
To smooth the scheme, TPL allegedly sought the help of suspects BP and SR, officials at the Directorate General of Taxes who served as supervisors in the company’s tax examination.
Meanwhile, in an information disclosure to the Indonesia Stock Exchange (IDX) on 19 August 2026, TPL stated it had become aware of media reports concerning the alleged Rp2 trillion transfer pricing corruption case at the Ministry of Finance’s Directorate General of Taxes involving the company.
Management said it was still reviewing and verifying the information. The company also said it would convey further information to the IDX and the public once material, relevant and verifiable information became available.
Regarding its tax obligations, the company stated that it consistently conducts its business activities and fulfils its tax obligations in accordance with prevailing laws and regulations.
TPL also said it had not identified any additional material impact on its business continuity specifically arising from the reports, which under prevailing rules would require separate disclosure.
Regarding the involvement of directors, commissioners, employees or other related parties in the case, TPL said it was still conducting further review and verification. At the time, the company said it had not received official information confirming the matter.
The company also stated that it respects the law enforcement process conducted by Kejagung and will take the necessary measures in line with developments in the proceedings and prevailing regulations.
Regarding the status of the case, TPL said in the disclosure that it had not received official information confirming the case status, case number, or the court where the case is being examined.
The company emphasised that it is law-abiding and consistently ensures compliance with its tax obligations in accordance with prevailing laws and regulations.