Indonesian Finance Minister Eyes $330 Million in Unpaid Steel Tax Revenue

Indonesia's Finance Minister, Purbaya Yudhi Sadewa, has flagged a significant potential loss of state revenue, estimating up to Rp5 trillion (approximately $330 million) from the steel industry alone.

Sadewa revealed that 40 steel companies have been identified as potentially not meeting their tax obligations, with investigations only recently beginning on one of them. "We estimate that perhaps Rp4-5 trillion has been leaked," Sadewa stated to reporters in Jakarta.

This pursuit of unpaid taxes is part of the government's broader strategy to expand its tax base and ensure all companies fulfill their fiscal duties. The potential revenue per company could be substantial, with estimates suggesting up to Rp1 trillion over a three-year period from a single firm, encompassing various taxes like income tax (PPh) and value-added tax (PPN), as well as import-related duties.

Furthermore, the minister indicated that the prolonged period during which these companies may have evaded taxes suggests possible internal complicity within the Ministry of Finance. Sadewa stated he has identified employees who may be involved in irregularities and plans to take firm action, including potential dismissal, against those found guilty.