Finance Minister Purbaya Reports CPO Export Manipulation to President Prabowo

Finance Minister Purbaya Yudhi Sadewa reported serious findings regarding trade misinvoicing to President Prabowo Subianto. The findings were disclosed during a closed-door meeting at the Presidential Palace complex in Jakarta on Thursday, 21 May 2026. Based on random checks of 10 companies in the palm oil sector (crude palm oil/CPO), there were strong indications of export price recording far lower than actual prices, particularly for the United States market. ‘They appear to be manipulating export prices to the United States. We want to detect ship by ship,’ Purbaya said firmly. The minister presented startling data on discrepancies in trade invoices. In one case, a company reported an export value of USD 2.6 million, while the importer in the United States paid USD 4.2 million. ‘So, 57 percent lower. There’s something even more extreme; another company exported USD 1.43 million here, while the import was USD 4 million there. The price changed by 200 percent,’ Purbaya explained. This practice is known as under-invoicing, where a company deliberately reports a lower transaction value to avoid tax and royalties that should go to the state treasury. The practice often involves affiliated companies. An Indonesian company sells the commodity to a trader company owned by the same group abroad at a cheap price. The trader then sells it to the final buyer at market price. As a result, substantial profits are recorded abroad, while profits in Indonesia shrink, drastically reducing tax remittances to the state. To curb leakage of state revenue due to misinvoicing and transfer pricing, the government has formed PT Danantara Sumberdaya Indonesia (DSI). This entity functions as a Special Export State-Owned Enterprise that will manage governance of the export of natural resources. This firm is expected to improve the revenue structure from the key commodity sector and ensure every drop of Indonesia’s wealth contributes to national development under President Prabowo’s leadership. (Ant/H-3)