Fraud Analysis at PT Indofarma Indonesia: A Contextual Qualitative Study using the Fraud Hexagon Model

This study explores fraudulent financial reporting at PT Indofarma Indonesia using the Fraud Hexagon framework, a model that extends the classic fraud triangle to encompass six dimensions: pressure, opportunity, rationalization, capability, ego, and collusion. Employing a contextual qualitative method, the research examines PT Indofarma’s financial statements from 2018–2022 and reveals patterns of manipulation that led to state losses. The findings indicate that financial pressure, poor internal monitoring, auditor changes, political connections, and executive behavior played significant roles in enabling fraudulent practices. The study contributes to understanding fraud risks in state-owned enterprises and provides insights for improving corporate governance and fraud detection.