Indonesia Investigates PT Toba Pulp Lestari for Corruption, State Losses Estimated at $2 Trillion Rupiah

Indonesia's Attorney General's Office is investigating PT Toba Pulp Lestari (TPL) for alleged corruption related to transfer pricing. The investigation has led to the questioning of nine witnesses, all employees of the Ministry of Forestry.

According to Anang Supriatna, Head of the Legal Information Center at the Attorney General's Office, the inquiry centers on the source of the wood used by TPL for pulp production. Investigators aim to determine if the wood was sourced legally with proper permits or illegally. If permits were lacking, it could constitute a criminal offense.

Two employees from the Directorate General of Taxes at the Ministry of Finance have been named suspects in the case. They are accused of neglecting their supervisory duties and failing to properly review tax reports for TPL between 2008 and 2025. This alleged negligence allowed TPL to engage in under-invoicing during exports, reporting products as lower-value items. The suspects reportedly received money from TPL for their actions.

The state is estimated to have incurred financial losses of up to Rp 2 trillion due to this alleged corruption, stemming from a reduction in expected revenue. The investigation is ongoing.