Called Out by Purbaya on Under Invoicing, Here Are Salim Ivomas' Cases
PT Salim Ivomas Pratama Tbk (SIMP) is a vertically integrated agribusiness group in Indonesia. Its main activities span the entire supply chain, from research and seed breeding to palm oil plantations and the production and marketing of cooking oil and margarine. Beyond its commercial and operational targets, the company’s track record includes interactions with regulatory and law enforcement authorities regarding the distribution of staple goods.
The name Salim Ivomas emerged as one of the companies allegedly involved in transfer pricing practices. Finance Minister Purbaya Yudhi Sadewa on 26 May 2026 revealed a list of companies detected by the Ministry of Finance’s system as engaging in under invoicing and transfer pricing for Crude Palm Oil (CPO) exports. Purbaya was initially reluctant to disclose the names, but eventually mentioned several from a list of ten companies, which included Wilmar International Limited, Musim Mas Group, PT Salim Ivomas Pratama Tbk, and Golden Agri-Resources.
The company has also been involved in several other cases:
- KPPU Sanctions for Cooking Oil Distribution Practices
In mid-2023, the Business Competition Supervisory Commission (KPPU) officially imposed an administrative fine of Rp40.93 billion on the company. The sanction was based on the authority’s conclusion that the company had violated national antimonopoly regulations. The violation was closely linked to actions restricting the circulation and withholding the supply of cooking oil commodities in the domestic market during the extreme scarcity in early 2022. The KPPU panel assessed that the deliberate reduction in production volume was a response to the Highest Retail Price (HET) policy set by government agencies, creating market distortions that directly harmed consumer purchasing power.
- Legal Challenge Through a Commercial Court Lawsuit
In direct response to the massive fine imposed by the KPPU in the domestic trade case, corporate management refused to accept the ruling as final and binding. The company took the initiative to pursue legal recourse by formally filing an objection lawsuit at the Commercial Court within the Central Jakarta District Court. In accordance with binding legislation for filing objections to antimonopoly sanctions, the company was required to deposit a cash guarantee of 20% of the total fine obligation during the litigation process.
- Food Task Force Inspection at Deli Serdang Logistics Facility
Scrutiny of the company’s trade logistics peaked in February 2022. The Food Task Force team, together with the North Sumatra Regional Police, conducted a surprise inspection of the company’s warehousing facilities located in the Deli Serdang area. During the field inspection, law enforcement officials discovered a stockpile of cooking oil with a total volume reaching 1.1 million kg. Authorities initially investigated this massive finding on suspicion of criminal hoarding of staple goods amidst a national supply crisis. However, after a series of in-depth clarifications and audits of domestic shipping route documents, the volume was confirmed to be purely operational daily logistics reserves to meet the essential raw material needs of the group’s internal instant noodle factory for the next few days.
- Attorney General’s Investigation into Transfer Pricing
In the realm of special crime enforcement, the company’s international distribution operations also came under the intensive investigative radar of the Attorney General’s Office. This was recently mentioned by the Indonesian Finance Minister, Purbaya Yudhi Sadewa, regarding business practices that could potentially result in state losses in the form of unrecorded tax revenues. The investigation specifically focused on indications of tax regulation violations and alleged manipulation of export value calculations for palm derivative commodities. The practices under investigation pointed to the deliberate reporting of export transactions at values far below international market prices, known as transfer pricing and under invoicing. The prosecutorial authorities conducted an in-depth examination of the completeness of banking facility scheme documents and export financing procedures to ensure there was no potential loss of state revenue due to these practices.
- Regulatory Dispute over Plasma Land Fulfilment in Rokan Hilir
At the operational plantation level, the company also faced a civil dispute related to the fulfilment of agrarian regulations with communities around its operational area in Rokan Hilir. The case originated from a collective demand by community groups for the corporation to immediately realise the central government’s regulatory obligation to provide plasma plantations covering at least 20% of the total area of the Cultivation Rights Title (HGU) managed commercially by the company. The resolution process for this agrarian dispute was quite protracted and required mediation intervention from local government officials before eventually proceeding to civil settlement.
- Financial and Operational Performance Highlights (2021-2025)
Despite facing a series of regulatory dynamics, the company demonstrated the resilience of its integrated agribusiness model through stable financial performance. In 2025, the company recorded a gross profit of Rp5,474,465 million, an increase of 13% compared to the Rp4,837,828 million recorded in 2024. Operating profit in 2025 reached Rp4,001,479 million, experiencing a 21% increase from the previous year.