Attorney General’s Office Searches PT IPPS Office in ‘Transfer Pricing’ Case

Jakarta (ANTARA) – Investigators from the Attorney General’s Office’s Deputy Attorney General for Special Crimes (Jampidsus) have searched the office of PT IPPS in connection with an alleged corruption case involving transfer pricing by PT Toba Pulp Lestari (TPL) Tbk to corporate entities between 2008 and 2025.

The Attorney General’s Office’s Head of the Legal Information Centre, Anang Supriatna, said in a statement received in Jakarta on Friday that the search began at 10 am local time on Thursday (29 October) and continued until 3 am on Friday.

“The search was conducted at the PT IPPS office, located on the 11th floor of Menara Batavia, Jalan KH Mas Mansyur Kavling 126, Karet Tengsin, Tanah Abang, Central Jakarta,” he said.

Investigators seized a number of documents and several pieces of electronic evidence during the search.

“Among the evidence was a mobile phone containing conversation data suspected to be related to the case,” he said.

The investigators also sealed the PT IPPS office and the door of a cabinet that served as an entrance to a concealed room inside the office.

PT Toba Pulp Lestari has also been named a corporate suspect in the case.

According to the alleged case chronology, from 2008 to 2025 PT Toba Pulp Lestari exported pulp products to its affiliate DP Macao Marketing International Ltd and sold products domestically to its affiliate Asia Pacific Rayon.

In conducting these business activities, the company is suspected of acting unlawfully by under-invoicing products and changing or manipulating their Harmonized System (HS) codes, thereby altering the products’ characteristics, uses and values.

For its pulp exports and domestic sales, PT Toba Pulp Lestari was required to submit transfer-pricing (TP) documentation and corporate tax returns to the tax office for a review of the fairness of transaction prices.

However, reviews of audit and supervision working papers and audit reports were allegedly not based on the audit programmes drawn up by state officials. As a result, the officials responsible did not compare prices in the company’s TP documentation and tax returns.

The alleged unlawful conduct is estimated to have caused state financial losses of around Rp2 trillion.