Tax Irregularities Suspected, Purbaya Conducts Surprise Inspection of Chinese Steel Firm in Pulogadung

Finance Minister Purbaya Yudhi Sadewa carried out a surprise inspection at a Chinese steel company in the Pulogadung area, East Jakarta. He stated he wanted to ensure all business actors conduct their activities fairly, transparently, and in accordance with applicable regulations. “Our goal is not to obstruct or shut down businesses, but to ensure the creation of healthy and fair competition for all industry players,” Purbaya said in a statement on Thursday, 25 June 2026. The field visit was conducted after initial indications suggested a possible mismatch between the scale of the company’s business activities and its reported tax obligations. Based on government data, there is a suspicion that the amount of tax paid by the company does not yet reflect the magnitude of its business activities. Therefore, the government has asked the company to submit supporting documents and data for further verification. Purbaya stated that the ongoing process is still at the clarification stage and has not yet reached a conclusion of any violation. “We are asking the company to present relevant documents, so that the entire process can be conducted openly and based on facts. This way, we can fairly assess how the business practices are being carried out,” Purbaya said. The company’s management stated that all business activities have been conducted in accordance with the provisions in force in Indonesia. The company also expressed its commitment to cooperating with the government in the ongoing clarification process. The government welcomed this cooperative stance and has asked the tax authorities to accelerate the process of data collection and analysis so that the verification results can soon provide certainty for all parties. In addition to the company inspected today, the government will also take similar steps against a number of other companies based on monitoring results and data that have been compiled. This measure is part of efforts to create a level playing field across various industrial sectors. “The government wants to ensure that every company has an equal opportunity to grow,” Purbaya said. “Therefore, all business actors must fulfil their obligations fairly and according to the rules. In this way, the national industry can grow in a healthy and sustainable manner.”