Toba Pulp Lestari Director Named Suspect in Transfer Pricing Corruption Case
Jakarta, CNBC Indonesia — Investigators from the Attorney General’s Office’s Deputy Attorney General for Special Crimes have named AL (Anwar Lawden), a director and corporate secretary of PT TPL (Toba Pulp Lestari), a suspect in an alleged corruption case involving transfer pricing by PT TPL to corporate entities between 2008 and 2025.
“The suspect designation was made under the Investigation Director of the Deputy Attorney General for Special Crimes’ Decree No. TAP-55/F.2/Fd.2/10/2026 dated 15 October 2026,” Attorney General’s Office legal information centre chief Anang Supriatna said, according to a press release on Friday (16 October 2026).
He said the suspect designation followed a series of investigative steps, including the examination of 116 witnesses, the seizure of documents and electronic evidence with approval from the district court, and testimony from experts in criminal law, state finances, and the cellulose and pulp industry.
The case concerns PT IIU, established under Deed of Establishment No. 329 dated 29 April 1983. Under Deed No. 61 dated 20 February 2001, it changed its name to PT TPL Tbk, a company operating in the pulp-processing and forestry industries.
“Suspect AL, as a director and corporate secretary of PT TPL, conducted the company’s business by exporting pulp products to its affiliate, DP MMI Ltd, and selling products domestically to APR’s mill,” Anang said.
According to him, AL unlawfully under-invoiced the products by changing or manipulating their HS codes. Products whose characteristics, uses and market value meant they should have been classified as dissolving pulp were instead reclassified as paper-grade pulp/bleached hardwood kraft pulp (BHKP).
For its pulp exports and domestic sales, PT TPL was required to submit transfer-pricing documentation (TP Doc) and corporate tax returns to the Tax Office for Listed Companies (KPP PMB) at the Directorate General of Taxes, so that the transactions could be assessed for fairness. However, Anang said, AL submitted reports that did not reflect the actual transactions.
“Suspect AL unlawfully gave money to tax examiners (fiscus) so that they would not conduct oversight and, when reviewing the working papers and audit reports, would not follow the audit programme that had been drawn up. As a result, the tax examiners did not compare the prices stated in PT TPL’s TP Doc and tax returns, and did not check fair market prices to verify the accuracy of the prices reported,” Anang said.
He said the actions of AL and the tax examiners caused state financial losses of approximately Rp2 trillion. Investigators have also taken steps to recover state losses, including the transfer of Rp500 million from the Directorate General of Taxes to the Attorney General’s Office’s Other Government Account (RPL).
AL faces primary charges under Article 603 in conjunction with Article 20(a) or (c) of Law No. 1 of 2023 on the Criminal Code, in conjunction with Article 18 of Law No. 31 of 1999 on the Eradication of Corruption, as amended by Law No. 20 of 2001.
The alternative charge is under Article 604 in conjunction with Article 20(a) or (c) of Law No. 1 of 2023 on the Criminal Code, in conjunction with Article 18 of Law No. 31 of 1999 on the Eradication of Corruption, as amended by Law No. 20 of 2001.
Anang said AL had previously failed to respond to investigators’ summonses. Investigators therefore arrested him in Medan, North Sumatra, on Thursday (15 October 2026), under an arrest warrant issued on the same date.
“Following his arrest, suspect AL was detained for 20 days, from 16 October to 4 November 2026, at the Salemba Detention Centre, Attorney General’s Office branch,” Anang said.