Finance Minister Tests 10 Companies: All Engaged in Under Invoicing

The government is intensifying its pursuit of import transaction value manipulation practices (under invoicing) that risk depleting state revenues. Finance Minister Purbaya Yudhi Sadewa stated that such practices continue to be detected in several companies and are currently being investigated by fiscal authorities.

“We have already detected companies engaging in under invoicing. We are currently pursuing them,” Purbaya told reporters when met at the office of the Ministry of Economic Affairs Coordinating Board in Central Jakarta on Monday (16 March 2026).

According to him, the practice occurs when the transaction values reported are lower than their actual values. This condition results in reduced tax potential that should enter the state treasury.

Purbaya revealed that indications of this practice are quite strong. In preliminary inspections of several companies, the government discovered a consistent pattern. “I tested 10 companies, and all of them were under invoicing,” he said.

However, the Ministry of Finance is still calculating the potential state losses from this practice. The extent of losses is estimated to only be determined after the inspection process is completed. “The losses are still being calculated,” said Purbaya.

The government hopes that tackling this practice will increase state revenues in the coming period. In addition to taking action against violations, the government is also attempting to improve the tax system to reduce revenue leakage.

According to Purbaya, improvements to tax administration and oversight began showing results in the early part of this year. He stated that tax revenues in the first two months of this year grew by approximately 30 per cent compared to the same period last year.

“Growth in value-added tax and luxury goods tax was even around 95 per cent compared to the first two months of last year. This demonstrates that the economy is truly moving,” said the former chairman of the Deposit Insurance Corporation Board of Commissioners.

He conveyed that improving state revenues depends not only on new tax policies, but also on curbing practices that have been depleting state revenue potential. “If the economy is moving and our tax system is improved, state revenues will automatically increase,” explained Purbaya.