Finance Minister Identifies 10 Palm Oil Firms Suspected of Export Manipulation, Government Losses Exceed Rp1.48 Trillion

Finance Minister Purbaya Yudhi Sadewa confirmed his ministry has identified 10 palm oil companies suspected of manipulating export values through underinvoicing in crude palm oil (CPO) trade.

He believes, based on random sampling of the largest exporters, all are engaged in the same practice.

“I selected the top 10, and all of them did it. So it’s safe to say they all did,” Purbaya stated at the House of Representatives in Senayan, Jakarta, on Monday, 25 May 2026.

Estimated government losses from the alleged case amount to $84 million, or approximately Rp1.48 trillion (assuming an exchange rate of Rp17,700 per US dollar).

Purbaya also believes the potential losses could be much higher if similar illicit practices are found across all transactions by the involved companies.

“That $84 million figure comes from the sample taken. If we look at all transactions, it will definitely be higher. The sample was only three ships, but if we check everything, yes, it could exceed $84 million,” he said.

The case has been reported to President Prabowo Subianto, including the list of palm oil companies suspected of export price manipulation.

He is confident that if the underinvoicing case is uncovered and legally processed, it would significantly benefit government revenues.

Purbaya previously explained the underinvoicing scheme: companies export products to their Singapore-affiliated entities at below-market prices, then resell them at much higher prices to destination countries.

One company reportedly declared exports of $2.6 million, while US import records showed $4.2 million.

“I won’t name the company. It shipped at $2.6 million from Indonesia, but imported at $4.2 million there – a 57% difference,” Purbaya said previously.

“Even more outrageous: one company exported at $1.44 million here, but imported at around $4 million there – a 200% price hike,” he added.