Jakarta, ID
Monday, May 28 2012, 17:50 PM

Headlines

Lawmaker hits Mulyani over Bakrie tax probe

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A tax office probe  into possible tax evasion by three firms affiliated to Aburizal Bakrie has entered the political fray. Lawmakers suspect a fight-back counter-strike against the combative Golkar Party chief.

Several members of the House of Representatives’ inquiry team in the Bank Century case questioned Monday the motives of Finance Minister Sri Mulyani Indrawati, who oversees the tax office, alleging this could be linked to the House Century inquiry, which has put Mulyani and Vice President Boediono in the eye of a political storm.

Andi Rachmat, lawmaker from the Prosperous and Justice Party (PKS), said he suspected the tax investigation was related to the much-debated Bank Century (now Bank Mutiara) bailout case and targeted Aburizal, whose close Golkar ally Idrus Marham now chairs the House’s inquiry team.

“This tax issue is maybe part of Mulyani’s efforts to hit back at us,” Andi said.

“In fact, I also heard that they want to check the inquiry members’ tax forms,” Andi added, although later on the tax office brushed aside such a move.

The inquiry team has kicked off the investigation into the Rp 6.76 trillion (US$710.2 million) bailout case.

Last Friday, tax office chief Mochamad Tjiptardjo revealed it was carrying out a probe into possible tax evasion worth Rp 2.1 trillion by three coal miners from the Bakrie Group — PT Kaltim Prima Coal (KPC) and PT Arutmin Indonesia, and their parent company, PT Bumi Resources — in relation to their 2007 tax obligations.

The Bakrie Group is controlled by the powerful politically wired Bakrie family, headed by the Golkar Party chief, who is also a former coordinating welfare minister.

There has been a public confrontation between Mulyani and Aburizal following Mulyani’s interview last week with The Wall Street Journal, in which Mulyani claimed the Century bailout inquiry was being used as an attempt to discredit her reform agenda by politicians, including Aburizal, the Golkar’s chairman.

Andi went on to say the tax checks could be strongly linked with Mulyani’s discomfort over legislators’ probing the bailout case.

“This can be categorized as an abuse of power. She is allegedly using her authority as the Finance Minister to satisfy her own objectives,” Andi said.

Andi’s fellow inquiry team member Maruarar Sirait said he hoped Mulyani did not really mean to “attack” legislators.

“The tax verification plan, however, has raised suspicions, indeed. I, however, think positively. Let the public judge her if she really does the tax checks [on legislators],” the Indonesian Democratic Party of Struggle (PDI-P) politician said.

Tjiptardjo, the tax office chief, has denied speculation that the tax investigation was linked with the confrontation between Mulyani and Aburizal.

Tax office spokesman Djoko Slamet Surjoputro on Monday also rejected lawmakers’ remarks that the office was planning to take a closer look at the tax forms of the inquiry team members. (bbs)