Indonesian Finance Minister Uncovers Potential Under Invoicing of Imports

Suspicious Price Discrepancy Found During Inspection

Finance Minister Purbaya Yudhi Sadewa discovered a significant price discrepancy during a recent inspection visit to Tanjung Perak Customs Office on November 11, 2025. The inspection revealed a machine imported at a declared value of US$7 (approximately Rp117,040). However, further investigation showed that the same item was being sold online for between Rp40 million to Rp50 million.

Implications for State Revenue

This significant price difference raises serious concerns about potential under invoicing practices among importers. Under invoicing occurs when importers declare a lower value for goods to reduce their tax and duty obligations, potentially resulting in substantial losses to state revenue. The minister expressed surprise at the magnitude of the price difference, stating that the declared value seemed unusually low compared to market prices.

Investigation and Potential Consequences

The minister has ordered further investigation into the matter to verify the authenticity of the declared values and to determine whether any regulations have been violated. If confirmed, such practices could lead to revenue losses for the government and potentially trigger regulatory actions against the importers involved. The discovery highlights the ongoing challenges faced by Indonesian customs authorities in ensuring compliance with import regulations and preventing revenue leakage through misdeclared shipments.