The British executive was imprisoned in Jakarta earlier this week for alleged failure to pay around $5.87 million in personal and corporate income taxes, while the company itself is reported to owe over $US20million in unpaid debts in Indonesia and overseas.
In a bad sign for the imprisoned director the Indonesian government issued a decree in June stating that tax evaders owing more than Rp100 million ($US11,800) to the central government or any local government can be jailed for up to one year without trial.
Taxation director general Hadi Purnomo on Tuesday said the offender would not be released until the outstanding taxes are paid.
Media reports say it isn't clear exactly how much of the money is owed by Indo-Pacific Resources and how much is owed by the director, given that he only officially joined the company in October 2000.
