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Indonesia Lost Rp 300 Trillion in Revenue due to Tax Evasion by 300 Business Tycoons.

by Raidi
2024-10-12
in Economic
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Tax Evasion

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Jakarta, Indonesia Sentinel — Hashim Djojohadikusumo, the Deputy Chairman of the Gerindra Advisory Board, has disclosed tax evasion done by 300 business tycoons, causing a significant loss to the nation’s revenue. The estimated shortfall from unpaid taxes totals Rp 300 trillion (approximately $19 billion).

According to Hashim, Prabowo is already in possession of the names of these tax-delinquent business owners. This information was provided by Coordinating Minister for Maritime and Investment Affairs Luhut Binsar Pandjaitan and the head of Indonesia’s Financial and Development Supervisory Agency (BPKP), Muhammad Yusuf Ateh. The data was further corroborated by the Ministry of Environment and Forestry (KLHK).

“This data comes from BPKP, and it has been confirmed by the Ministry of Environment and Forestry that millions of hectares of forest areas have been illegally occupied by rogue palm oil plantation owners. Despite warnings, they have yet to pay their taxes,” Hashim said during a discussion with the Indonesian Chamber of Commerce and Industry (KADIN), as quoted by Detik on Saturday, October 12.

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“We have gathered data showing up to Rp 300 trillion in unpaid taxes. This data has been compiled by the government. Prabowo already has a list of over 300 names. I didn’t see any KADIN members on the list, but I will check again,” Hashim added.

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Illegal Palm Oil Plantations

Hashim stated that these rogue business owners have established illegal palm oil plantations on millions of hectares of forest land. As a result, tax revenue from these plantations has not been collected by the state.

“There are millions of hectares of forest land illegally occupied by rogue palm oil plantation owners. They have been warned, but as of now, they have not paid their taxes,” he said.

Jusuf Kalla Warns of Political Consequences Over Education Budget Cuts in Indonesia

The issue of financial leakage has been a recurrent theme in Prabowo Subianto’s political campaigns, dating back to his 2014 presidential run. At that time, Prabowo frequently raised concerns about the nation’s budget losses, which even led to being mocked and overly criticized due to his focus on leakage in state revenue.

Plan to Establish a Ministry of State Revenue

One of Prabowo’s key strategies to address these fiscal issues is the creation of a Ministry of State Revenue, a move aimed at improving tax collection and tackling tax evasion. Earlier reports suggested that Prabowo intended to establish a State Revenue Agency, but recent developments indicate that this will now take the form of a full-fledged ministry.

“There is Asta Cita, the 8th point, which mentions the State Revenue Agency. This will become the Ministry of State Revenue, and the minister has already been selected,” Hashim revealed.

Prabowo’s plan is part of a broader agenda to strengthen state institutions and ensure that government revenue, particularly from critical sectors like palm oil, is properly collected and managed to benefit Indonesia’s economy.

 

(Raidi/Agung)

Tags: Business TycoonsPrabowoTax Evasion
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