Wood Entrepreneur Gets 2.5‑Year Prison, Rp4.75 Billion Fine

Wood entrepreneur identified as HS was sentenced to two years and six months in prison and a fine of Rp4.75 billion by the Ambon District Court on 16 October 2025. He was convicted of evading Value Added Tax (PPN) amounting to Rp1.188 billion. The verdict followed a trial presided over by a panel of judges.

The public prosecutor sought a principal fine of Rp1.18 billion, which under the tax law was multiplied by four, resulting in a total fine of Rp4.75 billion. Prior to prosecution, the Regional Tax Office for Papua, West Papua and Maluku had offered HS a voluntary settlement, but no payment was made, leading civil servant investigators (PPNS) and the police to commence a criminal investigation.

The ruling serves as a warning to taxpayers, especially businesses in Papua and Maluku, to remit collected VAT to the state treasury. The Directorate General of Taxes also urges taxpayers to seek guidance at a Tax Office (KPP) or Tax Consultation Center (KP2KP) to ensure compliance.