Range International’s Indonesian subsidiary has successfully overturned 2018 tax assessments, eliminating a significant financial burden and clearing the way for focused growth.
- Successful appeal against 2018 Indonesian Withholding and VAT tax assessments
- Tax liability reduced to nil by Indonesian Tax Court ruling
- Judgments delivered on 25 June 2025, providing financial clarity
- Company to assess impact on financial accounts and monitor further reviews
- Re>Pal™ zero-waste pallet production continues in East Java
A Legal Win for Range International
Range International Limited (ASX, RAN), known for its innovative Re>Pal™ zero-waste recycled plastic pallets, has secured a significant legal victory through its Indonesian subsidiary, PT Repal Internasional Indonesia. The Indonesian Tax Court in Jakarta ruled in favour of the company’s appeals against 2018 tax assessments related to Withholding Taxes and Value Added Tax (VAT), effectively reducing the tax amount payable to zero.
This outcome, announced on 26 June 2025, marks the resolution of a prolonged dispute with the Indonesian Directorate General of Taxes (IDGT), bringing much-needed certainty to Range International’s financial outlook. The court’s full acceptance of the appeals removes a potentially substantial liability from the company’s books.
Implications for Business and Investors
Executive Chairman Richard Jenkins expressed the board’s satisfaction with the judgment, highlighting the dedication of Indonesian legal counsel in achieving this result. The ruling not only alleviates immediate financial pressure but also allows Range to concentrate on expanding its production capabilities and market reach across the Asia Pacific region.
Range’s manufacturing operations in East Java, Indonesia, remain central to its growth strategy, leveraging its patented ThermoFusion™ technology to produce 100% upcycled plastic pallets. The removal of this tax uncertainty could enhance investor confidence and support future capital allocation decisions.
Looking Ahead, Monitoring and Financial Impact
While the court’s decision is final for now, the company acknowledges that the Indonesian tax authority may seek to review the judgments further. Range International and its advisers will carefully evaluate the implications for upcoming financial statements and maintain transparency with the market as required under continuous disclosure obligations.
This development underscores the complex regulatory environment in which multinational manufacturers operate, especially in emerging markets. Successfully navigating such challenges is crucial for sustaining long-term growth and shareholder value.
Bottom Line?
Range’s tax appeal victory clears a major hurdle, but vigilance remains as Indonesian authorities may revisit the case.
Questions in the middle?
- Will the Indonesian tax authority challenge the court’s ruling further?
- How will this judgment affect Range International’s upcoming financial results?
- What impact might this legal clarity have on Range’s expansion plans in Asia Pacific?