ASIATODAY.ID, JAKARTA — Indonesia has intensified scrutiny of foreign companies after Finance Minister Purbaya Yudhi Sadewa conducted a surprise inspection at a Chinese-owned steel manufacturer in Jakarta’s Pulogadung industrial estate on Thursday, signaling a broader push to strengthen tax compliance and safeguard fair competition.
The unannounced visit underscores the government’s commitment to ensuring that all businesses operating in Indonesia comply with tax regulations, regardless of their origin.
“We want to ensure that every company operating in Indonesia conducts its business in accordance with the applicable laws. Our objective is not to hinder investment or disrupt business activities, but to guarantee fair and healthy competition for all industry players,” Purbaya said.
The inspection followed preliminary indications of a possible mismatch between the company’s scale of operations and its reported tax obligations. According to government data, authorities suspect that the taxes paid may not fully reflect the company’s business activities.
Purbaya emphasized that the investigation remains in the clarification stage and that no conclusion has been reached regarding any potential violations.
“We have requested the company to provide the relevant documents so that the verification process can be conducted transparently and based entirely on facts,” he said.
The Chinese steel company’s management stated that its operations fully comply with Indonesian regulations and pledged full cooperation with tax authorities throughout the verification process.
Purbaya welcomed the company’s cooperative stance and instructed tax officials to accelerate data collection and analysis in order to provide legal certainty for all parties as quickly as possible.
The Finance Minister also revealed that similar inspections will be carried out at other companies identified through government monitoring and data analysis, as part of a broader strategy to improve tax compliance across multiple industries.
According to Purbaya, stricter enforcement is intended to create a level playing field for all businesses, strengthen state revenue, and support the sustainable growth of Indonesia’s industrial sector.
“The government wants every company to have an equal opportunity to grow. That is why every business must fulfill its obligations fairly and in accordance with the law. Only then can Indonesia’s industrial sector develop in a healthy and sustainable manner,” he concluded. (AT Network)
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