{
    "success": true,
    "data": {
        "id": 1827286,
        "msgid": "gapki-palm-oil-export-oversight-needs-stronger-law-enforcement-1782553926",
        "date": "2026-06-27 15:53:03",
        "title": "Gapki: Palm oil export oversight needs stronger law enforcement",
        "author": "",
        "source": "ANTARA_ID",
        "tags": "",
        "topic": "Economy",
        "summary": "The Indonesian Palm Oil Association (Gapki) has stated that while the country's export monitoring system is already robust, it must be reinforced with stricter law enforcement against practices like under-invoicing that harm state revenue. The call comes as the government establishes a new state-owned enterprise to act as the sole intermediary for strategic commodity exports, including palm oil. Gapki also cautioned against conflating legitimate transfer pricing with illegal mispricing, noting that under-invoicing assessments require consideration of various commercial factors.",
        "content": "<p>The Indonesian Palm Oil Association (Gapki) believes the mechanism\nfor supervising palm oil exports in Indonesia is already very strict,\nbut it needs to be further emphasised by strengthening law enforcement\nagainst violators, such as those engaging in under-invoicing, which\ndisrupts contributions to state revenue. \u201cThe existing system in\nIndonesia is already very good. What needs to be done is law\nenforcement. The oversight mechanism is already in place, and Gapki\nalways encourages all members to comply with tax regulations,\u201d said\nYustinus Lambang Setyo Putro, Head of Taxation and Fiscal Affairs at\nGapki, in a statement in Jakarta on Saturday. He said under-invoicing\nhas come under the spotlight after the government issued Government\nRegulation Number 24 of 2026 concerning the Governance of Strategic\nNatural Resource Commodity Exports. Furthermore, the government\nestablished PT Danantara Sumberdaya Indonesia (DSI) as a state-owned\nenterprise acting as the sole intermediary for the export of three\nstrategic commodities\u2014palm oil, coal, and ferroalloy\u2014to increase\ntransparency and close loopholes for under-invoicing practices. Yustinus\nexplained that export oversight is conducted in multiple layers,\nstarting from the licensing process through the Indonesia National\nSingle Window (INSW), the CEISA system of the Directorate General of\nCustoms and Excise, physical inspection of goods, monitoring of export\nproceeds by Bank Indonesia, to tax audits on the fairness of transaction\nvalues. In addition, Yustinus also reminded that transfer pricing should\nnot be directly equated with under-invoicing. According to him, transfer\npricing is a common business practice in transactions between affiliated\ncompanies. \u201cA violation only occurs if there is mispricing, namely the\nmanipulation of price, volume, or type of goods to obtain undue\nprofits,\u201d he said. He explained that an under-invoicing assessment\ncannot be made simply by comparing selling prices. For palm oil\ncommodities, for instance, Indonesia does not yet have a single national\nreference price that is fully accepted by all business actors. The\ngovernment\u2019s reference price itself is a combination of various\ninternational sources, including from the Netherlands and Malaysia.\nFurthermore, he noted that export prices are influenced by many\ncommercial factors, such as the type of product (CPO, kernel, or\nderivative products), quality and certifications like ISPO and RSPO, the\nplace of delivery which affects logistics costs, the timing of the\ntransaction, and the type of contract used. Nevertheless, Yustinus\nstressed that companies proven to have sold far below a reasonable price\nwithout a justifiable commercial basis can still be categorised as\nengaging in under-invoicing. \u201cGapki always encourages all its members to\ncomply with every applicable tax and trade regulation. If any are indeed\nproven to have committed violations, they must of course be processed\naccording to the prevailing law,\u201d he said.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/gapki-palm-oil-export-oversight-needs-stronger-law-enforcement-1782553926",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}