Attorney General's Office Names Toba Pulp Lestari a Suspect in Transfer Pricing Corruption Case
The Attorney General’s Office (Kejagung) has named PT Toba Pulp Lestari (TPL) a corporate suspect in a transfer pricing corruption case covering the period 2008 to 2025.
Saiful Bahri Siregar, Director of Investigation at the Deputy Attorney General for Special Crimes, said PT 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 in terms of characteristics, use, and price value.
“What should have been a dissolving pulp product was changed into a paper grade pulp product, or bleached hardwood kraft pulp, known as BHKP,” he said at a press conference on Monday (7/9).
He explained that the processed pulp product was sold by PT TPL to Macau Marketing International Ltd abroad, as well as to Asia Pacific Rayon, a company based in Indonesia.
Saiful said PT TPL also failed to provide transfer pricing documentation, or TP Doc, and corporate tax returns to the relevant tax service office during the examination of transaction price fairness.
“PT TPL Tbk unlawfully cooperated with authorised officials so that no oversight was carried out,” he explained.
In addition, he said that during the review process, the analysis of the KKP and audit report (LHP) was not based on the audit programme prepared by state officials.
Saiful explained that through this collusion, the authorised officials did not carry out price comparisons of PT TPL’s TP Doc and corporate tax returns.
As a result, he said, the transfer pricing scheme carried out by PT TPL is alleged to have caused state financial losses of up to Rp2 trillion.
“Based on the results of the investigation, the investigative team has today named the corporation PT TPL Tbk as a suspect,” he concluded.
The Attorney General’s Office has also named two officials from the Finance Ministry’s Directorate General of Taxes as suspects in the transfer pricing corruption case involving PT Toba Pulp Lestari between 2008 and 2025.
Kejagung said Toba Pulp Lestari carried out exports through under invoicing, by declaring its products as paper grade pulp, or bleached hardwood kraft pulp (BHKP).
To smooth the operation, Toba Pulp sought the assistance of suspects BP and SR, officials at the Finance Ministry’s Directorate General of Taxes who served as supervisors in the tax examination of Toba Pulp Lestari.
CNNIndonesia.com is still seeking comment from Toba Pulp Lestari regarding the case currently being handled by the Attorney General’s Office.
Toba Pulp Lestari had previously spoken out about the alleged transfer pricing corruption case, relating to tax avoidance, being investigated by the Attorney General’s Office.
Anwar Lawden, a Director and Corporate Secretary of Toba Pulp Lestari, said the company had received information regarding the matter and was still carrying out further study and verification.
“The company will convey further information to the Indonesia Stock Exchange and the public in accordance with applicable laws and regulations once material, relevant, and verifiable information is available,” Anwar said in an information disclosure to the Indonesia Stock Exchange on Thursday (20/8).
Anwar added that the company remains committed to conducting its business activities and fulfilling its tax obligations in accordance with applicable laws and regulations.