$27 billion tax scandal at finance ministry tarnishes Indonesia’s anti-graft push

JAKARTA – A brewing tax scandal in Indonesia, which has revealed over US$20 billion in suspicious transactions over 14 years, is casting a shadow on President Joko Widodo’s campaign to root out corruption in government as public anger mounts.

Focus has turned to two-time Finance Minister and trusted Jokowi ally Sri Mulyani Indrawati, who is facing calls on social media to resign. The case comes at a crucial juncture for Mr Widodo, who is trying to draw foreign companies and funds to invest in a US$34 billion new capital project. There is also the question of why the finance ministry never responded to the financial watchdog after it sent the ministry multiple reports of the suspicious transactions dating back to 2009, said Coordinating Minister for Political, Legal and Security Affairs Mahfud MD on Wednesday.

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