February 5, 2026 | 03:45 pm
TEMPO.CO, Jakarta - Finance Minister Purbaya Yudhi Sadewa conducted sudden inspection of a Chinese steel company in Cikupa, Tangerang Banten, on Thursday, February 5, 2026. The company is suspected of conducting direct sales to clients without deducting Value Added Tax (VAT).
Purbaya stated that about 40 companies are suspected of using a similar modus operandi. "They claim it's case-based. I suffer a lot, and the VAT decreases," Purbaya said in Tangerang on February 5, 2026.
This enforcement also signals to entrepreneurs not to engage in fraudulent practices. "They (entrepreneurs) claim that in the past, Indonesian officials could be bribed so that they could smoothly run their businesses. Now I prove that we cannot be bribed. If they play around, we will keep hitting them," he said.
The Ministry of Finance has calculated that there is a significant leakage of state revenues due to the fraudulent practices of these companies. From the 40 companies suspected of tax evasion, state revenues are predicted to decrease by Rp4-5 trillion.
Previously, Purbaya revealed this modus operandi. The company originated in China and operates in the steel and construction sectors. "The owners are from China; they have a company here, and all of them are Chinese. They sell directly to clients, cash-based, without paying VAT," Purbaya told reporters at the Ministry of Finance office, Jakarta, on Thursday, January 8, 2026.
According to Purbaya, this tax evasion practice harms the country. Therefore, the Minister of Finance stated that the ministry will take swift action. He also revealed that the potential losses from these practices are significant.
In addition to tax evasion, Purbaya also mentioned underinvoicing as a practice in customs and excise. He said that several palm oil companies underinvoice up to half of their exports.
Therefore, Purbaya stated that he will improve the performance and organization of the Directorate General of Taxes and the Directorate General of Customs and Excise. "If there are clear threats from Customs and Excise. If they cannot improve within a year, they will be genuinely laid off," he said.
Anastasya Lavenia contributed to the writing of this article
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