South Jakarta Businessman Jailed for Failing to Remit VAT and File Tax Returns

Jakarta, CNBC Indonesia – The Directorate General of Taxes’ South Jakarta II Regional Office (Kanwil DJP Jakarta Selatan II) named DB, Commissioner of PT SMS, as a suspect in a tax crime case on 14 April 2026.

DB is suspected of deliberately failing to remit Value Added Tax (VAT) that had been withheld and collected, as well as failing to submit periodic VAT returns (SPT Masa PPN) as required.

“Law enforcement is part of efforts to maintain taxpayer compliance while also providing legal certainty and creating a sense of justice for all members of society who have fulfilled their tax obligations,” said Imam Arifin, Head of the South Jakarta II Regional Office of the DGT, in a press release on Monday (20 July 2026).

The naming of DB as a suspect resulted from an investigation into suspected violations of tax provisions committed by the individual concerned.

The act is suspected of breaching Article 39 paragraph (1) letter (c) of Law Number 28 of 2007 on the Third Amendment to Law Number 6 of 1983 on General Provisions and Tax Procedures, as most recently amended by Law Number 6 of 2023 on the Stipulation of Government Regulation in Lieu of Law Number 2 of 2022 on Job Creation into Law.

It was explained that any person who deliberately fails to remit tax that has been withheld or collected may face criminal sanctions in the form of imprisonment and fines, as such conduct risks causing losses to state revenue from the tax sector.

DB had previously filed a pre-trial application with the South Jakarta District Court on 13 May 2026. In the application, DB named the Minister of Finance, c.q. the Director General of Taxes, c.q. the Head of the South Jakarta II Regional Office of the DGT, as respondents.

Through the pre-trial application, the applicant DB sought to test the legality of the investigation process and the naming of the suspect carried out by the tax investigators, including the validity of the evidence and the procedures for gathering evidence to satisfy the elements of the tax crime.

However, the legal effort was unsuccessful. On Wednesday, 17 June 2026, the single judge of the South Jakarta District Court read out a ruling rejecting the entirety of the pre-trial application filed by the applicant. The outcome was communicated by the Registrar of the South Jakarta District Court to the South Jakarta II Regional Office of the DGT on 10 July 2026.

The rejection of the pre-trial application was based on the consideration that the respondent, in this case the Head of the South Jakarta II Regional Office of the DGT, had satisfied both the formal and substantive requirements in naming the suspect status, including possessing at least two valid pieces of evidence as required under the Criminal Procedure Code (KUHAP). Accordingly, the naming of DB as a suspect was declared legally valid and the investigation process may continue in accordance with prevailing laws and regulations.