Determination of Transfer Pricing Practices in Indonesia: Empirical Study on Primary Consumer Sector Companies Listed on the IDX in 2023-2025

This study aims to analyze the influence of Tunneling Incentive, Bonus Incentive, and Leverage on Transfer Pricing in order to respond to the rampant tax avoidance activities through Transfer Pricing. The research sample includes 150 observations from manufacturing companies in the primary consumption sector on the Indonesia Stock Exchange for the 2023-2025 period which were drawn through the purposive sampling method. Data analysis was carried out using binary logistics regression. The test results proved that Tunneling Incentive had a significant positive effect on Transfer Pricing. Furthermore, Bonus Incentive was significant with a negative effect on Transfer Pricing. Meanwhile, Leverage did not have a significant influence on Transfer Pricing. In conclusion, the higher the Tunneling Incentive, the more likely the company to do Transfer Pricing while the increase in the bonus mechanism tends to reduce the likelihood of companies doing Transfer Pricing.