Ardian Wibisono, Muhamad Al Azhari& Dion Bisara – The departure of Finance Minister Sri Mulyani Indrawati for Washington and allegations made against top tax officials in the House of Representatives on Tuesday have raised doubts about the future of the high-profile tax probe into PT Bumi Resources.
Bumi is controlled by the family of Golkar Party chairman Aburizal Bakrie, who has been at odds with Sri Mulyani and whom many blame for political pressure that, at least indirectly, is believed to have led to her departure.
In a move spearheaded by Golkar lawmaker Bambang Soesatyo, the House Commission III for legal affairs announced that it was investigating the alleged roles of Mochamad Tjiptarjo, the new director general of taxation, and Pontas Pane, the interim director of intelligence and investigation at the Directorate General of Taxation, in a case of alleged tax fraud involving Wilmar Inter-national Limited Group.
Meanwhile, the House's Commission XI, which oversees financial affairs, held a hearing on the Permata Hijau Sawit tax case in which it urged that the law on taxes be revised because senior tax officials have "too much authority and power over taxpayers," Golkar lawmaker Melchias Markus Mekeng said.
The tax office on Tuesday was forced to issue a statement saying the Bumi tax probe would continue.
Analysts say that all of these developments indicate the political winds are beginning to blow in Bumi's favor regarding the tax probe.
Edwin Sinaga, president director of PT Financorpindo Nusa, said the moves announced in the House were likely efforts to weaken the authority of the tax office, and Bumi could see the tax case resolved in its favor.
Analysts have been predicting a bright outlook for the coal miner on the back of rising coal prices and sales, but the tax issue has pushed Bumi's debt ratio higher than other coal miners'.
Bumi and two of its coal-mining subsidiaries – PT Kaltim Prima Coal and PT Arutmin Indonesia – are under scrutiny by the tax office for allegedly evading a combined Rp 2.1 trillion ($225 million) in taxes from the 2007 tax year. The tax office claims that KPC underpaid its taxes by Rp 1.5 trillion, while Bumi and Arutmin allegedly underpaid by a combined Rp 600 billion. The tax office claimed the companies filed incorrect tax declarations in 2007.
"The investigation is still ongoing. We did not halt it," Pontas said. "We are still probing for more proof so it can be handed over to the Attorney General's Office."
The tax office has elevated its probe of KPC and Bumi to the status of criminal investigations, while the probe of Arutmin remains at the preliminary stage.
