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View all search resultsAnalysis: AGO targets nation's richest in latest tax graft scandal
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The front gate of the Attorney General's Office (AGO) building in Jakarta is seen on Sept. 9, 2023. (Shutterstock/Winsartwork)
A
s the current administration continues its crackdown on financial crimes during President Prabowo Subianto's first year in office, the corruption investigation targeting Victor Hartono, executive director of private tobacco giant PT Djarum, remains one of the most significant cases mounted by the Attorney General's Office (AGO).
Victor, the eldest son of tycoon Robert Budi Hartono, was placed under a travel ban by the Immigration and Corrections Ministry at the AGO's request. Effective from Nov. 14 until May 14, 2026, he appeared alongside four others subjected to the ban: former taxation director general Ken Dwijugiasteadi, junior tax auditor Karl Layman, tax consultant Heru Budijanto Prabowo and Bernadette Ning Dijah Prananingrum, head of the central tax office in Semarang, Central Java.
However, as of Nov. 29, the AGO has since revoked Victor's travel ban, citing his cooperation during questioning. The ban on the four other individuals remains in force. Despite the revocation, Victor continues to undergo legal scrutiny, with prosecutors emphasizing that the investigation into the alleged tax graft scheme is still ongoing.
The AGO's investigation centers on allegations that Victor colluded with tax officials at the Finance Ministry to manipulate Djarum's tax obligations between 2016 and 2020.
Because the alleged scheme occurred during Sri Mulyani Indrawati's tenure as finance minister, speculation has grown that she might be drawn into the case. However, AGO spokesman Anang Supriatna has downplayed that possibility, saying there are currently no plans to summon the former minister. Meanwhile, prosecutors have questioned Suryo Utomo, who replaced Ken as tax chief during their investigation in 2019.
The scheme reportedly operated through a rogue tax official who reduced the tax liabilities of selected companies. These reductions were arranged via explicit agreements between the official and corporate taxpayers, whose tax bill was adjusted illicitly in exchange for bribes. "There was compensation for reducing [the tax payment amount]," Anang confirmed.
The AGO has conducted raids at several locations including the residences of implicated tax officials, confiscating luxury cars, motorcycles and documents.
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