RI–Singapore Agree to Follow Up on Transfer Pricing and Misinvoicing

JAKARTA, DDTCNews - Director General of Taxes, Bimo Wijayanto, has revealed that Indonesia has reached an agreement with Singapore to follow up on misinvoicing and transfer pricing issues.

According to Bimo, both issues have become a concern for Indonesia and Singapore. The two countries consider that addressing them is necessary to achieve fairness in taxation and equitable tax competition.

"There is goodwill on the part of the Singapore Prime Minister to discuss 3 matters. First, a joint resolution regarding forest and land fires. Second, transfer pricing. Third, misinvoicing. These have become bilateral issues, framed in terms of tax fairness and equitable tax competition," said Bimo at a public consultation on the drafting of tax policy recommendations entitled Decentralisation of the Tax Court: Towards an Independent and Accessible Court, Wednesday (4/11/2026).

Last week, Minister of Foreign Affairs, Arrmanatha Nasir (Tata), had stated that the Indonesian and Singapore governments had discussed the establishment of a task force named the Joint Task Force on Strengthening Business Responsibilities.

"We discussed the establishment of a Joint Task Force on Strengthening Business Responsibilities. This task force links information exchange, financial intelligence, cross-border evidence gathering as well as asset recovery efforts where possible," he said.

The task force will be established to support enforcement action against parties responsible for forest and land fires. Going forward, this cooperation is also expected to be expanded to address underinvoicing practices by corporations.

"National borders must not protect those who profit from forest burning. This cooperation is a first step. We hope this measure can pave the way to address other challenges, such as underinvoicing," said Tata.

Meanwhile, Singapore's Minister of Foreign Affairs, Vivian Balakrishnan, expressed full support for the establishment of the Joint Task Force on Strengthening Business Responsibilities.

The task force will serve as a forum for both countries to exchange information regarding corporations involved in forest and land fires.

"The joint task force will ensure that there is very close coordination of actions and sharing of information between Indonesia and Singapore," he stated. (rig)