Indonesian Finance Minister Purbaya Yudhi Sadewa stated that 40 foreign-invested steel companies in Indonesia have defaulted on value-added tax (VAT) payments. Two of these companies will soon face legal prosecution.
According to media reports on Wednesday (January 14, 2020), Purbaya revealed that 40 steel companies have been identified as suspected of tax evasion and noted that inspections will soon be conducted on two of the largest firms involved. These companies include both foreign-owned enterprises and domestic Indonesian entities.
Purbaya expressed surprise that such tax evasion practices had only now been uncovered, especially given the relatively large scale of the companies involved. He also raised suspicions that certain individuals within the Ministry of Finance may have been involved in these practices.
Written by Cora Ji, jiruyan@mysteel.com
