The Influence of Political Connection, Capital Intensity, and CSR on Tax Avoidance in Indonesian Energy Firms
DOI:
https://doi.org/10.30630/jam.v21i1.391Keywords:
political connection, capital intensity, CSR, tax avoidanceAbstract
This study examines the effects of political connection, capital intensity, and corporate social responsibility (CSR) on tax avoidance in energy-sector companies listed on the Indonesia Stock Exchange during the 2020–2024 period. Tax avoidance remains an important issue because it may reduce state revenue and reflect managerial strategies to minimize tax burdens. Understanding the determinants of tax avoidance is particularly important in the energy sector, as this industry plays a strategic role in the national economy and is subject to substantial regulatory and public scrutiny regarding corporate taxation. This study employs a quantitative approach using panel data regression analysis. The sample was selected through purposive sampling, resulting in 35 firm-year observations. The results indicate that capital intensity and CSR have significantly reduced the effective tax rate, suggesting higher levels of tax avoidance, while political connection has no significant effect. However, the joint significance test shows that political connection, capital intensity, and CSR do not simultaneously explain tax avoidance. These findings suggest that operational structure and CSR disclosure are more influential than political ties in explaining tax avoidance practices. The study contributes to the existing literature by providing empirical evidence on the factors influencing tax avoidance in Indonesia's energy sector and offers insights for policymakers and corporate managers in designing more effective tax governance and regulatory strategies.
References
[1.] Challoumis C, Constantinou A. Combating Tax Avoidance: EU and Greek Measures For Fair Corporate Taxation. Balt J Leg Soc Sci. 2024;3:13–21.
[2.] Lesmana KN, Ismail M, Waty L. The Relationship of Sustainability Report, Corporate Risk, and Transfer Pricing on Tax Avoidance. Manag Stud Entrep J. 2025;6(2):763–73.
[3.] Siswanto D, Dewi HK. Tax Ratio Indonesia 2024. KONTAN.CO.ID - JAKARTA. 2025.
[4.] Wijaya A. ICW Ungkap Manipulasi Penjualan Batu Bara Grup Bakrie. Tempo. 2010;1.
[5.] Indawati Y, Anggriawan TP, Sakti PB. Pengaruh Reformasi Perpajakan terhadap Kepatuhan Wajib Pajak di Indonesia. 2024;6(4):9796–802.
[6.] Ishak AC, Asalam AG. Pengaruh Koneksi Politik, Capital Intensity, dan Corporate Social Responsibility Disclosure Terhadap Tax Avoidance. Own Ris J Akunt. 2023;7(4):3041–51.
[7.] Indarto BA, Widarjo W. Political Connections and Tax Avoidance in Indonesia. Eur J Bus Manag Res. 2021;6(5):276–82.
[8.] Batubara M. Pengaruh Political Connection, Earning Management, dan Corporate Social Responsibility Terhadap Tax Avoidance dengan Corporate Governance Sebagai Pemoderasi. J Ilm Akunt dan Keuang. 2024;13(2):152–65.
[9.] Gunawan F, Barli H. Hubungan Transfer Pricing dan Koneksi Politik Terhadap Tax Avoidance dengan Ukuran Perusahaan Sebagai Moderasi. Neraca Akuntansi Manajemen, Ekon. 2025;23(11).
[10.] Maryani, Sumantri II. Pengaruh Koneksi Politik dan Corporate Risk Terhadap Tax Avoidance. IJMA (Indonesian J Manag Accounting). 2024;5(2):466–73.
[11.] Komalasari Y, Lestari DI. Pengaruh Capital Intensity dan Political Connection Terhadap Tax Avoidance Studi Kasus Perusahaan Pertambangan Periode 2018-2022. J Econ Bus Account. 2024;7(3):6345–57.
[12.] Sari R, Haq A. Pengaruh Capital Intensity dan Leverage terhadap Tax Avoidance dengan Profitabilitas sebagai Variabel. J Ekon Trisakti. 2025;5(2):1381–90.
[13.] Elisa HM, Sastri TE. Pengaruh Kepemilikan Institusional, Komite Audit, Capital Intensity, dan Corporate Social Responsibility Terhadap Tax Avoidance. J Intelek Insa Cendika. 2025;2(7):13173–89.
[14.] Susan AN, Faizal A. Pengaruh Leverage, Capital Intensity, Sales Growth dan Kepemilikan Institusional terhadap Tax Avoidance. J Ekon Trisakti. 2023;3(1):877–88.
[15.] Widiyah E, Abbas DS, Hidayat I. Pengaruh Kepemilikan Manajerial, Corporate Social Responsibility, Capital Intensity, dan Ceo Overconfidence Terhadap Agresivitas Pajak. Own Ris J Akunt. 2025;9(3):1690–705.
[16.] Pramita YD, Susianti EN. Pengaruh Transfer Pricing, Koneksi Politik, Thin Capitalization, dan Pengungkapan Corporate Social Responsibility Terhadap Tax Avoidance dengan Corporate Governance Sebagai Variabel Moderasi. J Akunt Inov. 2023;1(2):83–100.
[17.] Sipayung ESN, Putri YA, Henny D, Yanti HB. Tax Avoidance Practices on The Indonesian Stock Exchange. Media Ris Akuntansi, Audit Inf. 2023;23(1):169–82.
[18.] Saputri R, Nuswandari C. Tax Avoidance Pada Perusahaan Sektor Energi Yang Terdaftar Di Bursa Efek Indonesia. J Ilm Wahana Pendidik. 2024;10(1):710–26.
[19.] Putri WA, Aisyaturrahmi. Pengaruh Koneksi Politik terhadap Tax Avoidance dengan Kualitas Audit sebagai Variabel Moderasi. J Ekon Bisnis dan Akunt. 2025;5(1):701–16.
[20.] Anugrah YT, Siagian V. Pengaruh Capital Intensity dan Sales Growth Terhadap Tax Avoidance Dimoderasi oleh Profitabilitas pada Sektor Consumer Cyclicals di Bei Tahun 2020-2022. J Bisnis Akunt Vol. 2023;13(2):140–50.
[21.] Kusnadi GP. Dapatkah Corporate Social Responsibility menjadi Deductible Expense? Direktorat Jenderal Pajak. 2024.
[22.] Sahir SH. Metodologi Penelitian. 1st ed. Dr. Ir. Try Koryati, MS, editor. Jogjakarta, Jawa Timur: PENERBIT KBM INDONESIA; 2021. 83 p.
[23.] Pranadipta R, Natsir K. Financial, Non-Financial, and Macro-Economic Factors That Affect The First Day Profit Rate When Conducting Initial Public Offering. 2023;1(2):276–89.
[24.] Napitupulu RB, Simanjuntak TP, Hutabarat L, Damanik H, H.Harianja, Sirait RTM, et al. Penelitian Bisnis Teknik dan Analisis Data dengan SPSS-STATA-Eviews (Vol. 1). Madenatera; 2021.
