JAKARTA. The audit conducted by the Audit Board of the Republic of Indonesian (BPK) on the Central Government Financial Report (LKPP) for the 2018 fiscal year, found that a memorandum of understanding (MoU) regarding the renegotiation of the extension of the Freeport contract in 2015 contradicted the export duty tariff set by the Ministry of Finance. As a result, Indonesia may lose Rp 1.82 trillion.
BPK also found irregularities in the implementation of tax regulations by the Ministry of Finance (MoF). It has the potential to reduce state revenues to Rp 2.72 trillion.
In accordance with the Overview of Semester Examination Results (IHPS) I-2019, there are several violations of taxation regulation. The most significant one was in the implementation of a memorandum of understanding between the Ministry of Energy and Mineral Resources (ESDM) and PT Freeport Indonesia (FI), namely the renegotiation of the extension of Freeport's contract. As a result, Indonesian lost Rp 1.8 trillion.
Another one is the status and expiration date of the billing of the tax assessment of Rp 408.50 billion, which cannot be trusted.
Responding to the findings, the Director of Counseling, Services and Public Relations of the Directorate General of Taxes, Hestu Yoga Saksama ensured that his party would follow up on the findings in accordance with the regulations. One of them is by making improvements related to tax assessments. (AM/AR)