Causing State Losses of Rp583 Billion, 5 Steel Company Bosses Arrested by Tax Directorate General

Investigators from the Civil Service Investigators (PPNS) of the Banten Regional Tax Office (Kanwil DJP) have arrested five bosses of iron and steel companies found to have evaded taxes. They are initialled RS, CX, GM, HQ, and LCH, and have been designated as suspects in alleged criminal acts in the field of taxation in the Banten region. The designation of suspects stems from investigations into taxpayers PT PSI, PT PSM, and PT VPM, which operate in the iron and steel processing industry. This investigation follows up on search operations conducted on 5 February 2026 at the taxpayers’ business locations, attended by the Minister of Finance of the Republic of Indonesia, Purbaya Yudhi Sadewa, and the Director General of Taxation, Bimo Wijayanto. “The suspects RS, CX, GM, HQ, and LCH are directors, shareholders, and parties controlling the companies,” said the Head of Kanwil DJP Banten, Aim Nursalim Saleh, in a press release on Wednesday (13/5/2026). The modus operandi of the five suspects in the alleged tax crime case was carried out through PT PSI, PT PSM, and PT VPM by submitting Value Added Tax (PPN) Monthly Tax Returns (SPT) with contents alleged to be untrue or incomplete for the tax periods from January 2016 to December 2019. Furthermore, they conducted covert sales without supporting tax invoice documents (non-PPN sales) and received payments through third-party accounts (nominees) not using company accounts. According to the Directorate General of Taxes, the actions of the five suspects caused losses to state revenues of at least Rp583.26 billion related to PPN for the tax periods from January 2016 to December 2019. RS, CX, GM, HQ, and LCH are charged under Article 39 paragraph (1) letter d of Law Number 6 of 1983 on General Provisions and Tax Procedures as amended several times, most recently by Law Number 6 of 2023 on the Enactment of Government Regulation in Lieu of Law Number 2 of 2022 on Job Creation into Law. “The act of intentionally submitting an SPT with untrue or incomplete contents that can cause losses to state revenues is punishable by imprisonment of at least 6 months and at most 6 years, as well as a fine of at least twice the underpaid tax amount and at most four times the underpaid tax amount,” said Aim. The arrest of the five suspects was carried out by PPNS Kanwil DJP Banten together with the Directorate of Special Criminal Investigation of Metro Jaya Police, Banten Police, Banten High Prosecutor’s Office, and supported by the Tangerang District Court. Kanwil DJP Banten also coordinated with the Banten Regional Customs and Excise Office regarding bonded storage locations and the Banten Regional Directorate General of Immigration regarding efforts to prevent the suspects. Four of the five suspects are known to be foreign nationals.