BUSINESS

Indonesia Targets Chinese Steelmakers in Widening Tax Crackdown

Published: Jan. 17, 2026 6:12 a.m. GMT+8

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Indonesian Finance Minister Purbaya Yudhi Sadewa. Photo: IC photo

Indonesian authorities are preparing unannounced inspections of major steelmakers, including Chinese-owned firms, in a widening investigation into alleged value-added tax evasion by roughly 40 companies, officials said.

Finance Minister Purbaya Yudhi Sadewa said Wednesday that tax regulators had flagged several companies through data analysis. Two of the largest suspects — unnamed for now — are facing imminent raids. Purbaya hinted at potential complicity within the ministry itself, noting that evasions on such a scale should have been easy to detect.

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Indonesian authorities are investigating alleged VAT evasion by about 40 steelmakers, including major Chinese-owned firms, amid a record 271.7 trillion rupiah tax shortfall in 2025.
Techniques under scrutiny include cash-only deals, underreported invoices, and fake employee records.
Broader actions include anti-dumping measures against Chinese steel and enforcement efforts across sectors, with President Prabowo backing stronger crackdowns in 2026.

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Who’s Who

Wuhan Iron and Steel Co. Ltd.: Wuhan Iron and Steel Co. Ltd. (武汉钢铁有限公司) is a Chinese steelmaker accused by the Indonesian Anti-Dumping Committee of dumping hot-rolled coil. On January 13, the committee recommended provisional anti-dumping duties ranging from 17.55% to $95.02 per ton against the company for at least four months. This action is part of Indonesia's broader crackdown on alleged tax evasion and unfair trade practices by steel companies, including Chinese-owned firms.

Tsingshan Holding Group: Tsingshan Holding Group is one of the Chinese steel producers that have made significant investments in Indonesia. The company is specifically mentioned as having major investments in the Indonesian market, highlighting its presence in a key market for Chinese steel producers.

Delong Steel Group: Delong Steel Group is a Chinese steel producer with significant investments in Indonesia. The company is implicated in an investigation by Indonesian authorities into alleged value-added tax evasion by approximately 40 firms. As a major player in the Indonesian steel sector, its operations are considered inextricably linked to any industry-wide enforcement by the Indonesian government.

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What Happened When

2025：: Indonesia raised 1,917.6 trillion rupiahs in tax revenue, reaching only 87.6% of the target and creating a 271.7 trillion rupiah shortfall, the largest in nearly a decade.

2025：: The government levied over 2.34 trillion rupiahs in fines on 20 palm oil producers and a nickel miner for permit violations.

2025：: Prosecutors recovered an additional 4.2 trillion rupiahs in high-profile cases.

December 2025：: President Prabowo Subianto endorsed the fiscal campaign, noting forest land reclamations and promising bolder measures in 2026.

January 13, 2026：: The Indonesian Anti-Dumping Committee accused Wuhan Iron and Steel Co. Ltd. of dumping and recommended provisional anti-dumping duties for at least four months.

January 14, 2026：: Finance Minister Purbaya Yudhi Sadewa stated that tax regulators flagged several companies, and two of the largest suspects are facing imminent raids.