Riau to sue untransparent companies

Rokanhilir regency in Riau province has threatened to sue local companies if they conceal important data related to their operations to the local authority, Riau Pos reported on Wednesday.

Wan Achmad Syaiful, the head of the treasury department at the regency, which hosts major plantations and oil companies including PT Caltex Pacific Indonesia, said on Tuesday that many companies in the regency concealed the information about their information to avoid tax payment.

"We have the rights to sue them because they hide important data in order to avoid tax payment," he said.

The operations of local companies have become more important now following the central government's plan to introduce an autonomy law next year. The local government will rely much on their local resources to finance their development spending.

Wan Achmad hoped that the local companies would adjust their activities to the change in the country's political atmosphere. Without the local companies' support, it will be difficult for the local authority to fully independent financially, (*)