PWYP Coalition Urges Law Enforcement to Uncover PT WP Tax Bribery Scandal, Cites Indications of Transfer Pricing
Bisnis.com, JAKARTA — The Publish What You Pay (PWYP) Indonesia Coalition has urged law enforcement agencies to thoroughly investigate the alleged tax bribery scandal involving PT Wanatiara Persada (WP), arguing that the company not only used fictitious contracts but also engaged in transfer pricing to shift profits and evade taxes.
PWYP Indonesia National Coordinator Aryanto Nugroho condemned the reduction of PT WP’s Land and Building Tax (PBB) obligation from Rp75 billion to Rp15.7 billion, as revealed through a Corruption Eradication Commission (KPK) sting operation.
According to him, the Rp59.3 billion tax manipulation—equivalent to 80% of the actual liability is not merely an administrative violation but a systemic crime resulting from collusion between business actors and rogue tax officials.
“This is a stark portrait of illicit financial flows in the extractive industry. How is it possible for a tax obligation to be slashed by as much as 80% simply through fictitious contracts and under-the-table negotiations?” he said, as quoted on Tuesday (13/1/2026).
Aryanto noted that the use of fictitious contracts to conceal inter-entity transactions could erode the tax base for other taxes.
PWYP suspects that state revenue leakage is not limited to PBB but also extends to the Corporate Income Tax (CIT), export income tax, and value-added tax (VAT). Moreover, he added, the use of fictitious contracts indicates a transfer pricing scheme designed to move profits to low-tax jurisdictions, or tax havens.
“We suspect that the Rp59.3 billion loss to the state is merely the entry point. If export values are manipulated, then the 1.5% Article 22 export income tax must also be questioned,” he said.
Pursue the Controlling Shareholder in Hong Kong
According to PWYP records, PT WP is a foreign direct investment (FDI) company operating on Obi Island, South Halmahera, with 60% of its shares controlled by Hong Kong–based Mining Metallurgy Ltd and 40% held by domestic parties.
Therefore, PWYP urged the KPK and the Attorney General’s Office not to stop at prosecuting individual officials, but to apply corporate criminal liability.
Aryanto encouraged the use of Supreme Court Regulation (PERMA) No. 3 of 2025 on Corporate Criminal Liability to charge PT WP as a legal entity.
“This step is crucial to break the chain of command of corruption and to reach the Beneficial Owners, including the controlling shareholders in Hong Kong who are the ultimate beneficiaries of this scheme,” he said.
Meanwhile, PWYP argued that the case exposes weak transparency commitments in the extractive industry. PT WP has failed to submit its tax reports through the Extractive Industries Transparency Initiative (EITI) mechanism during the 2022–2024 period, despite being listed as a reporting entity.
This lack of transparency is seen as creating a red-carpet effect for bribery, prompting PWYP to urge the government to strengthen the legal basis of EITI through a Presidential Regulation (Perpres) that makes tax data reporting mandatory and enforceable with strict sanctions.
“The government must have the courage to take firm action by reviewing and revoking the business licenses of corporations proven to have committed systemic tax crimes,” Aryanto concluded.
Source: Bisnis Indonesia