Indonesian Government Cracks Down on Import Under-Invoicing Practices

Discovery of Under-Invoiced Goods

The Indonesian Ministry of Finance has taken decisive action against companies suspected of under-invoicing import goods. The move comes after the discovery of a container with under-invoiced goods at the Tanjung Perak Customs Office in Surabaya. This finding prompted Finance Minister Purbaya Yudhi Sadewa to order an investigation into the matter.

Minister's Directive to Customs Authority

Purbaya has instructed the Directorate General of Customs and Excise to visit companies suspected of under-invoicing and demand proper tax payments. The minister emphasized that companies should declare the correct value of their imports and pay the appropriate taxes before further audits are conducted on their import-export activities. This directive aims to ensure compliance with tax regulations and prevent revenue losses due to fraudulent practices.

Implications for Businesses and Revenue Collection

The government's action is expected to have significant implications for businesses involved in import activities. Companies found guilty of under-invoicing will not only face tax demands but may also be subject to penalties and further scrutiny of their import-export operations. The crackdown is part of the government's efforts to enhance tax compliance and boost revenue collection.

Enhanced Scrutiny on Import Practices

The discovery of under-invoiced goods at Tanjung Perak highlights the need for stricter monitoring of import practices. The Ministry of Finance's actions signal a tougher stance on tax evasion and under-invoicing, which could lead to a more transparent and compliant business environment in Indonesia.