Indonesia Bars Tycoon's Son & Ex-Tax Chief Amid Corporate Tax Evasion Probe; President Prabowo Targets Powerful Business Families

Indonesia Imposes Travel Ban on Tycoon's Son Amid Sweeping Tax Corruption Probe

JAKARTA – In a significant move signaling heightened scrutiny of its powerful business elite, Indonesia has imposed a travel ban on Victor Hartono, the eldest son of billionaire Robert Budi Hartono, in connection with an ongoing tax-related corruption investigation. This development was confirmed by a law ministry official on November 20.

The ban extends to four other individuals, including Ken Dwijugiasteadi, a former director general of taxation, as disclosed by Mr. Yuldi Yusman, acting director general of immigration. The Attorney General’s Office, responding to inquiries, stated that these travel prohibitions were requested to ensure the individuals' availability for questioning in a probe concerning the possible underreporting of corporate tax liabilities between 2016 and 2020. Attempts to contact Hartono and Dwijugiasteadi for comment were unsuccessful.

President Prabowo's Broader Crackdown on Business Families

This high-profile investigation unfolds amidst President Prabowo Subianto's intensified efforts to assert greater oversight over Indonesia's influential business dynasties. President Subianto has been vocal in his criticism of these families, particularly those operating within the commodity sector, holding them accountable for environmental degradation and significant losses in state revenue. His administration has already taken decisive action, seizing millions of hectares of palm oil plantations and segments of mines that were allegedly operating illegally.

The Hartono Family's Economic Influence

The Hartono family holds considerable economic sway in Indonesia and Southeast Asia. Robert Budi Hartono, according to the Bloomberg Billionaires Index, is the fifth-richest person in Southeast Asia. He and his brother, Michael Bambang Hartono, are the controlling shareholders of PT Bank Central Asia, Indonesia's largest bank by market capitalization, highlighting the magnitude of the individuals involved in this burgeoning tax probe.