DPR Supports DJP Investigate 9 Million Hectares Of Palm Oil Land Not Paying Taxes

JAKARTA - Deputy Speaker of the House of Representatives for Korkesra Abdul Muhaimin Iskandar (Cak Imin) supports the Directorate General of Taxes (DJP) to investigate the findings of Coordinating Minister for Maritime Affairs Luhut Pandjaitan, related to 9 million hectares of oil palm plantations that have not paid taxes.

"Yes, Mr. Luhut's findings, I think the DGT must investigate thoroughly. 9 million hectares of palm oil are very wide, if they haven't paid taxes, of course the state will be harmed," said Cak Imin in a statement quoted by ANTARA, Wednesday, May 10.

Cak Imin said coordination between ministries and institutions also needed to be carried out to trace the validity of entrepreneurs who did not pay the tax, and explore how long they had not paid taxes.

"Of course, all stakeholders must sit down together and trace properly who is in arrears of tax. And if there is a violation, then take firm action according to the rules," he said.

Muhaimin appreciated the results of the audit by the Financial and Development Supervisory Agency (BPKP) on the results of the report by the Palm Oil Fund Management Agency (BPDKS).

According to Cak Imin, the data from the BPKP and BPDKS audits can be used as a reference for the government to improve oil palm management in Indonesia.

"As a result of the BPKP and BPDKS audits, I think it is enough to be a reference for the government to improve our palm oil management. Because the large palm oil should be a large tax potential," said Cak Imin.

Previously, the Coordinating Minister for Maritime Affairs and Investment (Menko Marves) Luhut Binsar Pandjaitan revealed that there were 9 million hectares of oil palm land in Indonesia that did not pay taxes.

This was revealed from the audit conducted by BPKP on the results of the BPDKS report.

"Of the 16.8 million ha, it turns out that not all of them paid well. Only 7.3 million ha paid taxes. Now we are chasing it," Luhut said in a seminar held by the ITB Alumni Association in Jakarta, Wednesday (10/5).

Luhut, who is also the Head of the Palm Oil Industry Governance Task Force, said that he had reported the matter to President Joko Widodo and Minister of Finance Sri Mulyani.

"I told President Jokowi, you don't have to take it to legal, just a penalty because it violates the rules. So, the palm oil company gets a penalty, it's decided by the Ministry of Environment and Forestry (KLHK) what the penalty value is," he said.