Analysis: Adaro witness summons revives questions over tycoon rivalry

The Corruption Eradication Commission (KPK) is investigating senior tax officials connected to Adaro, an Indonesian business group, in a corruption probe at the Banjarmasin Medium Tax Office (KPP Madya). The investigation has reignited questions about a historical feud between Adaro and businessman Hashim Djojohadikusumo, brother of President Prabowo Subianto.

KPK officials summoned former Adaro tax head Jul Seventa Tarigan, who failed to appear for questioning. The KPK has also previously sought information from Adaro-linked executives, including Adaro Wamco Prima finance director Edward Ennedy Rorong, who also failed to attend. The probe began with the arrest of KPP Madya Banjarmasin head Mulyono, BKB finance manager Venasius Jenarus Genggor, and tax auditor Dian Jaya Demega on tax restitution fraud.

The KPK found an overpayment of Rp 49.47 billion in VAT, reduced to Rp 48.3 billion after a fiscal correction. The case involves a disputed "appreciation payment" of Rp 1.5 billion, allegedly paid by BKB using a fictitious invoice, with portions given to Mulyono, Dian, and Venasius. The KPK's broader investigation into Adaro's ties to the tax office highlights the company's long history in South Kalimantan and its past financial dealings.