December 3, 2025 | 04:00 pm
TEMPO.CO, Jakarta - The investigation into alleged tax manipulation by Djarum reeks of political and business interests. The Attorney General’s Office must not become an instrument of coercion.
THE allegations of tax fraud that have embroiled the management of Djarum should prompt a transparent investigation by the Attorney General’s Office (AGO). Given the irregularities accompanying it, prosecutors must not cover up the facts in this case. Investigators must stay clear of any political or business motives so that there is no criminalization that could harm businesspeople.
The AGO is investigating alleged corruption in relation to the reduction of Djarum’s tax obligations from 2016 to 2020. Prosecutors suspect that the reductions occurred as a result of negotiations. For example, if Djarum was facing a tax bill of Rp30 billion, it was reduced to Rp5 billion to Rp10 billion. Investigators claim that these negotiations were not a part of the tax amnesty program. Djarum Chief Executive Officer Rachmat Hartono and former Taxes Director-General Ken Dwijugiasteadi have been banned from leaving the country.
If Djarum—which was one of top 20 taxpayers in 2024—is proved to have bribed officers up to the level of Taxes Directorate-General high-ranking officials, prosecutors must thoroughly investigate every aspect of the case. Illegal actions by taxpayers or tax officials cannot be tolerated. And the AGO must do better than the Corruption Eradication Commission, which failed to prosecute the company owners that bribed former Taxes Directorate-General official Angin Prayitno Aji.
If the problem is underpayment of tax, it does not have to be resolved through the criminal justice system. Our taxation system, which uses self-assessment, makes it possible for corrections of miscalculations or underpayment. If underpayments are discovered, the Taxes Directorate-General could reexamine Djarum’s tax returns. This would be better than intimidating businesspeople with legal action.
The problem is that there is a strong aroma of politics and business around the Djarum tax investigation. It makes no sense for a company with assets of almost Rp800 trillion to be caught up in a Rp30 billion tax problem. An investigation by this magazine discovered a political element behind the AGO investigation, from the presidential election up to the issuing of Patriot Bonds.
It is reported that Djarum is reluctant to support this issuing of Rp50 trillion of bonds by the Daya Anagata Nusantara Investment Management Agency (Danantara). Economists see this as an “arm twisting” bond program, a way of obliging businesses to contribute to state funds.
The Attorney General’s Office should not become a tool for the government to put pressure on entrepreneurs by threatening them with prosecution. Pressure from law enforcement agencies, like that apparently experienced by Djarum, will make other businesspeople in the country very uneasy. They will take the view that they have to go along with the wishes of the government if they do not want to be embroiled in legal problems. An even more dangerous consequence could be investors deciding to leave rather than becoming government cash cows.
It is not surprising that entrepreneurs are restless because the government has failed to create a healthy business climate, and is allowing pressure to be put on them. At any moment, they could have dealings with the law or even lose assets, as happened when the government took over oil palm plantations. Many of these businesspeople have invested, paid their taxes and created jobs. With no guarantee of business certainty, it is only a matter of time before more entrepreneurs leave Indonesia.
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