Taxing Times For Adaro

The report alleges that Adaro Energy, a major Indonesian coal company, used subsidiaries in Singapore, Mauritius, and Labuan to shift profits offshore, potentially reducing its Indonesian tax contributions by US$125 million between 2009 and 2017. Despite a public image of national contribution, the company is identified as a partner in the US$4 billion Batang coal-fired power plant, which is supported by Indonesian government financial guarantees. The document recommends that the Indonesian government review these tax practices and transition away from coal toward renewable energy, while urging banks to cease financing for new coal projects and companies dependent on coal power in Indonesia.

• Adaro Energy may have reduced its tax payments in Indonesia by US$125 million between 2009 and 2017 through the use of a tax haven network, which would have otherwise provided an average of US$15 million annually for essential services.
• The company shifted profits by trading Indonesian-mined coal through a Singaporean subsidiary, where the average tax rate was 10%, compared to a 50% average tax rate in Indonesia, and subsequently moved most of those profits to related companies in Mauritius.
• Adaro has expanded its offshore network to include a company in Labuan, Malaysia, which is used to hold a major investment in Australia.
• Adaro is a 34% joint venture partner in the US$4 billion Batang coal-fired power plant, the largest in Indonesia, and is receiving Indonesian government financial guarantees for the project.

APA

Global Witness (2019). Taxing Times For Adaro. https://globalwitness.org/en/campaigns/oil-gas-and-mining/indonesias-shifting-coal-money-3-taxing-times-for-adaro/

Chicago

Global Witness. Taxing Times For Adaro. 2019. https://globalwitness.org/en/campaigns/oil-gas-and-mining/indonesias-shifting-coal-money-3-taxing-times-for-adaro/.

Wikipedia

{{cite report |author=Global Witness |title=Taxing Times For Adaro |date=2 April 2019 |url=https://globalwitness.org/en/campaigns/oil-gas-and-mining/indonesias-shifting-coal-money-3-taxing-times-for-adaro/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{globalwitness2019taxing, author = {{Global Witness}}, title = {{Taxing Times For Adaro}}, institution = {Global Witness}, year = {2019}, month = apr, url = {https://globalwitness.org/en/campaigns/oil-gas-and-mining/indonesias-shifting-coal-money-3-taxing-times-for-adaro/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }