KPK Suspects That There Is A Game Between The People Of The Sorong City Government And Entrepreneurs In Arrears In Billions Of Rupiah Taxes

Head of the Coordination and Supervision Task Force for Region V KPK Dian Patria together with the Sorong City Government installed a tax arrears information sign at the Vega Hotel, Sorong City, Tuesday (29/7/2025). ANTARA/Yuvensius Lasa Banafanu.

JAKARTA - The Corruption Eradication Commission (KPK) suspects that there is a practice of playing between entrepreneurs and individuals in the Sorong City Government, Southwest Papua, regarding tax arrears whose value reaches billions of rupiah.

This indication arises as a form of concern over the weak commitment of local governments in controlling non-compliant taxpayers.

Head of the KPK Region V Coordination and Supervision Task Force, Dian Patria, emphasized that the condition of tax arrears that keep repeating from year to year indicates an abnormality in the regulatory and regulatory enforcement system in the area.

"Don't let this happen because there is courage from entrepreneurs, because maybe they already feel safe, or have secured it in quotes, you understand," said Dian when met in Sorong, Antara, Wednesday, July 30.

According to him, entrepreneurs who are reluctant to pay taxes may already have an 'unwritten agreement' with certain elements in the government. The absence of firm action such as the revocation of business licenses or sealing of tax arrears has also strengthened the allegation.

Based on KPK data, tax arrears from a number of hotels and restaurants in Sorong City accumulated from 2020 to 2025. These include the Vega Hotel Rp1,901 billion, M Hotel Rp1,470 billion, Royal Mamberamo Hotel Rp704 million, Marina Mamberamo Hotel Rp513 million, Belagri Hotel and The Belagri Rp201 million, Kasiari Valley and Luxio Hotel Rp237 million, Hotel F-Two: Rp43 million.

From the non-hotel sector, several companies were also recorded as in arrears in regional taxes of PT Pro Intertech Indonesia of IDR 4.896 billion, PT Lintas Artha Lestari: IDR 365 million, PT Bagus Jaya Abadi: IDR 356 million, PT Akam: IDR 361 million.

Dian admitted that the KPK had provided assistance many times to the Sorong City Government to improve tax management. However, no significant changes have been seen.

"In other areas, we only need to accompany them once, they immediately move. But in Sorong it's been many times and it's still like this. This is the last time from us," he said firmly.

The KPK is now encouraging the Sorong City Government to immediately take administrative action, including the revocation of business licenses and sealing of taxpayers who do not show good faith to pay off their obligations.

"If it is not paid, the permit is revoked. Do not let the government be afraid or play with their eyes. Enforce the rules for fiscal justice," said Dian.