Where does the money flow?

Each year, five of the Raja Garuda Mas Group (RGM) companies always make a plan: how much money to be cashed in to RGM.
In 2006, for example, two-parent company Asia Pacific Resources International Ltd. (APRIL) and Asian Agri Group, each has set a deposit of 70 per cent of its annual cash flow to the RGM. Its value is approximately U.S. $ 30 million (Rp 273 billion) for APRIL and U.S. $ 8 million (USD 72.8 billion) per month for the Asian Agri.
To achieve the targets, a variety of ways can be done, including among others, by raising the  (fictitious) cost  and reduced revenue (transfer pricing) or reduced profit, so the Asian Agri tax burden in the country will be reduced.

  1. The results from the profit transfer companies in Indonesia to affiliated companies abroad (presumably through transfer pricing and fictitious edging contracts transactions), such as the Global Advance Oil & Fats Ltd. (Macao) and the Asian Agri Abadi Oils and Fats Ltd. or  AAAOF (British Virgin Islands). The money was then forwarded to the Asian Agri as a dividend payment. 
  2. Asian Agri deposited the dividends to First Island Trust Company Ltd./Fitco (Mauritius) dan Treston International Ltd. (British Virgin Islands). According to the document of the Declaration of Ultimate Beneficial Ownership Treston (21 April 2004) and the Declaration of Trust Fitco (26 September 2003), the two companies are owned by Sukanto with Tinah Bingei (wife) and their two daughters: Imelda Tanoto and Belinda Tanoto. At the request of Treston and Fitco, dividends were transferred to a number of Sukanto’s overseas companies : Goalead Ltd., Headcorp International Ltd.., Etc.. 
  3. Deposit payment from the fictitious companies to accounts held by Haryanto Asian Agri Wisastra & Luke Eddy (HAREL) in Bank Permata and Luke Eddy & Djoko Oetomo (ELDO) at Bank Bumiputera. This money is eventually deposited into the  Goalead Ltd. account (Banca Intesa Bank, Hong Kong), which is owned by Sukanto Tanoto. 
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