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Corruption investigations in Indonesian customs and tax

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2026-08-18 12:24 UTC → 2026-08-18 18:28 UTC · added ~~removed~~

Indonesian authorities are conducting multiple investigations into corruption within the tax and customs sectors involving the manipulation of export documentation. In one probe, the Attorney General’s Office named two tax officers as suspects for allegedly accepting bribes to facilitate the under-invoicing of pulp exports. This scheme reportedly used lower-value harmonized system codes to reduce tax obligations, causing estimated state losses of approximately 2 trillion rupiah. Concurrently, the Corruption Eradication Commission is investigating the Directorate General of Customs and Excise, naming six suspects following a sting operation and noting concerns regarding the intimidation of witnesses. Further legal action has been taken against Fadjar Donny Tjahjadi, the former Technical Director of Customs. He has been indicted for allegedly causing Rp7.37 trillion in state losses through a scheme to manipulate crude palm oil (CPO) exports between 2022 and 2024. Prosecutors allege the scheme involved disguising CPO and its derivatives as palm oil liquid waste to evade export and domestic market obligations. The indictment also includes accusations of tampering with laboratory results and altering Harmonized System codes. Fadjar Donny Tjahjadi has now faced his first trial at the Jakarta Pusat Corruption Court. The case involves a total of 11 defendants, including government officials and private sector directors. According to the prosecution, participants received illicit fees ranging from millions to hundreds of billions of rupiah to circumvent national strategic commodity controls.

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