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Govt considers sanctions for companies suspected of trade misinvoicing

Jakarta (ANTARA) – Finance Minister Purbaya Yudhi Sadewa is considering imposing sanctions against 10 companies suspected of committing trade misinvoicing.“We will see what the best (sanctions) are. But we will not close those companies. They must pay their dues as determined later after the investigation,” Purbaya said here on Tuesday.An initial investigation to uncover these export-import manipulations is being carried out by the Finance Ministry, along with the Financial and Development Supervisory Agency (BPKP) and the Attorney General's Office.So far, the government has investigated 20 companies—with a primary focus on 10 large companies, all operating in the crude palm oil (CPO) industry.Purbaya said the modus operandi of the 10 companies generally involved manipulating export values through trading companies in Singapore.They reported export values lower than the actual selling price in the destination country. This finding was obtained from analyzing export data with data from export destination countries, he noted.”We examined 20 companies, including some smaller ones. We focused on the larger ones, and all of them did the same, those 10. So, if the larger ones do the same, the smaller ones probably do the same,” he said.To address the issues of underinvoicing and transfer pricing, the government established PT Danantara Sumberdaya Indonesia (DSI) as a sole exporter of palm oil, coal, and ferroalloys.As a state-owned enterprise specifically for exports, DSI is tasked with managing and overseeing export transactions of strategic natural resource commodities, in order to prevent the leakage of state revenue from such illegal practices.Danantara Indonesia Chief Investment Officer (CIO) Pandu Sjahrir stated that DSI will operate a profit-oriented business, in line with the business orientation of the state investment fund.DSI will initially operate as an agent or intermediary business model before developing other functions according to its human resource capacity, Sjahrir noted.