Jakarta, Jan. 13 -- The Indonesian government is investigating a number of foreign-invested companies operating in the country on suspicion of tax evasion, causing significant losses to the state budget.
Speaking to reporters at the Ministry of Finance headquarters, Indonesian Finance Minister Purbaya Yudhi Sadewa said the companies under investigation mainly operate in the steel and construction materials sectors. Many of them, he said, sold products directly to clients on a cash basis without properly reporting transactions or paying value-added tax (VAT).
The minister warned that such practices have inflicted substantial losses to the state buget revenue. In the steel sector alone, based on information from a whistleblower who has sinc...