DistantNews
Support us
🇮🇩 Indonesia /Crime & Justice

Attorney General’s Office names Toba Pulp Lestari a suspect in transfer-pricing corruption case

From CNN Indonesia · () Indonesian

Translated from Indonesian and summarized by DistantNews. Read the original for the full story.

At a glance

News Official statement Under investigation
  • Indonesia’s Attorney General’s Office named PT Toba Pulp Lestari a corporate suspect in an alleged transfer-pricing corruption case covering 2008-2025.
  • Investigators accuse the company of under-invoicing pulp exports by altering product classifications and say the alleged scheme caused up to 2 trillion rupiah in state losses.
  • Two Finance Ministry tax officials have also been named suspects, while the company says it is reviewing and verifying the information.

Indonesia’s Attorney General’s Office has named PT Toba Pulp Lestari a corporate suspect in a corruption investigation involving transfer pricing between 2008 and 2025.

Saiful Bahri Siregar, director of investigations at the attorney general’s office’s special crimes division, said the company allegedly under-invoiced its pulp products by changing their Harmonized System codes. Products that should have been classified as dissolving pulp were instead reported as paper-grade pulp or bleached hardwood kraft pulp, also known as BHKP.

The pulp was sold abroad to Macau Marketing International Ltd and domestically to Asia Pacific Rayon, investigators said. Saiful also accused Toba Pulp Lestari of failing to provide transfer-pricing documents and corporate tax returns to the relevant tax office during a review of whether the transactions were priced fairly.

The products should have been dissolving pulp, but they were changed to paper-grade pulp or bleached hardwood kraft pulp, or BHKP

· Saiful Bahri SiregarThe investigator’s description of the alleged product misclassification.

He said the company worked unlawfully with officials to avoid oversight. According to the investigation, those officials failed to compare prices using the company’s transfer-pricing documents and tax returns. Investigators say the alleged arrangement caused state financial losses of up to 2 trillion rupiah.

The Attorney General’s Office has already named two Directorate General of Taxes employees, identified as BP and SR, as suspects. They allegedly helped Toba Pulp Lestari while supervising its tax examination. The company’s director and corporate secretary, Anwar Lawden, said it had received information about the case and was conducting further review and verification. He said the company would provide additional information to the Indonesia Stock Exchange and the public in line with legal requirements once it became available.

Based on the results of the investigation, the investigative team today named PT TPL Tbk as a suspect corporation

· Saiful Bahri SiregarThe announcement naming Toba Pulp Lestari as a corporate suspect.
About this summary

Originally published by CNN Indonesia in Indonesian. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

More Stories

From Our Blog