Indonesia is cracking down on tax and customs agencies after uncovering billions of dollars in suspicious transactions made over the past 14 years, as public anger grows over these officials’ lavish displays of wealth.
(Bloomberg) — Indonesia is cracking down on tax and customs agencies after uncovering billions of dollars in suspicious transactions made over the past 14 years, as public anger grows over these officials’ lavish displays of wealth.
The government’s Financial Transaction Reports and Analysis Center identified about 300 trillion rupiah ($20 billion) in questionable dealings from 2009 to 2023 that are related to criminal offenses. Ivan Yustiavandana, who heads the financial watchdog, said similar cases were found in other government ministries but declined to give details.
Coordinating Minister for Political, Legal and Security Affairs Mahfud MD said the suspicious transactions involved 460 people in Finance Ministry, mostly the tax and customs agencies. The dealings were never closely tracked, he added.
The controversy has escalated in Southeast Asia’s largest economy since a viral video shed light on the lavish lifestyles of local tax officials and their family members. It’s called into question the credibility of the finance ministry, especially as it promotes tax compliance before the filing deadline at the end of this month.
Pricey Jeep Spurs Twitter Backlash Against Indonesia Tax Office
Indonesians took to social media when news of the suspect transactions emerged, with “BEA Cukai” — the name of the nation’s customs bureau, trending on Twitter on Thursday.
The government is scrambling to contain the fallout. The head of a regional customs office in central Java was removed from his post on Wednesday after Indonesians spotted social media posts of his daughter flaunting an outfit from luxury brand Balenciaga, estimated to cost about 22 million rupiah.
The customs official’s total wealth stood at 13.7 billion rupiah, surpassing that of Indonesia’s vice president who has disclosed 12.7 billion rupiah in assets, according to Corruption Eradication Commission data
The government is currently probing another 69 civil servants who are considered to have a high-risk profile for allegedly having questionable assets.
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