Jakarta. The Attorney General's Office has raided the Jakarta office of a private company IPPS as part of an investigation into suspected corruption involving transfer pricing transactions by publicly listed pulp producer Toba Pulp Lestari (IDX: INRU) between 2008 and 2025.

Investigators seized documents and electronic evidence, including mobile phones believed to contain conversations relevant to the case, Attorney General's Office spokesperson Anang Supriatna said on Friday.

The search was conducted by a special corruption investigation task force under the office's Deputy Attorney General for Special Crimes. It began at 10 a.m. on Thursday and continued until 3 a.m. on Friday.

Investigators also sealed the IPPS office and the doors of cabinets providing access to a concealed room, Anang said.

The investigation has already led to the naming of several suspects, including a director who also served as corporate secretary of TPL, identified by the initials AL.

Transfer pricing involves transactions between affiliated companies, often across national borders. Authorities scrutinize the practice when exporters allegedly sell commodities to overseas affiliates at artificially low prices before they are resold to buyers at higher market prices.

Prosecutors suspect AL manipulated export invoices by changing the products' customs classification codes or HS codes.

Products that were allegedly dissolving pulp, a higher-value material, were classified instead as paper-grade pulp or bleached hardwood kraft pulp (BHKP), potentially allowing the company to declare lower export values.

AL is also suspected of submitting inaccurate transaction reports despite being required to report transfer pricing documentation and corporate tax returns to the tax office responsible for publicly listed companies.

Prosecutors further allege that AL gave money to tax inspectors in connection with the case.

Two tax inspectors, identified as BP and SR, have also been named suspects. TPL itself has been designated a corporate suspect.

TPL was founded by Indonesian tycoon Sukanto Tanoto, who also established the Royal Golden Eagle (RGE) business group. However, the company's ownership has since changed. Its largest shareholder is now Hong Kong-based Allied Hill Limited, which held 92.54% of TPL's shares as of March 2026, while the remaining 7.46% was held by public investors.

Allied Hill is wholly owned by Everpro Investments Limited, an investment company registered in Samoa and ultimately controlled by Joseph Oetomo, according to TPL's corporate disclosures. Oetomo is also reported to be a senior figure in Tanoto's RGE business group.

Government Crack Down on Transfer Pricing
The government has also been examining suspected transfer pricing practices in the crude palm oil industry. A preliminary review of transactions involving Indonesia's 10 largest crude palm oil exporters reportedly indicated potential state revenue losses of at least Rp1.5 trillion, although the assessment covered only a limited sample of transactions.

President Prabowo Subianto has pledged tighter oversight of strategic commodity exports, claiming that fraudulent export practices have caused cumulative state losses of around $343 billion over the past 22 years.

His administration is seeking to centralize the management of strategic commodity exports, including crude palm oil, coal, iron, and ferroalloys, through Danantara Sumberdaya Indonesia, an export management entity operating under state investment agency Danantara Indonesia.

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