First hearing for CPO export corruption case using POME disguise set for next week
The first hearing in the alleged corruption case concerning the export of crude palm oil (CPO) and its derivative products, disguised as palm oil mill effluent (POME) between 2022 and 2024, will be held at the Corruption Court in the Central Jakarta District Court on Tuesday (18/8).
Central Jakarta District Court spokesperson Andi Saputra stated that eleven defendants will face the initial hearing, which will feature the reading of the indictments. “They are charged in a corruption case for benefiting themselves, others, or corporations (15 companies) related to CPO exports, with alleged state losses of Rp 7.3 trillion based on a BPKP audit,” Andi told reporters in Jakarta on Wednesday.
The eleven defendants include Fadjar Donny Tjahjadi, Technical Director of Customs at the Ministry of Finance’s Directorate General of Customs and Excise for the 2017-2024 period, and Lila Harsyah Bakhtiar, a Functional Policy Analyst and Senior Industry Development Advisor at the Ministry of Industry’s Directorate of Forest Product and Plantation Industries for 2021-2024. Other defendants are Muhammad Zulfikar, Head of Customs and Excise Service Section VI at the Dumai Type B Customs Supervision and Service Office in 2021; Edy Susanto, President Director of PT Sinar Mutiaranusa Palmindo; Tony, Director of PT Tanimas Edible Oil; and Yusrin Husin, Director and owner of PT Kencana Permata Nusantara.
The remaining defendants are Randy Tjahyadi Maliwarna, Director of PT Trimitra Agro Jaya; Van Ricardo, Director of PT Surya Inti Primakarya; Felix, Director and owner of PT Agrojaya Perdana; Erwin, Director of PT Bumi Mulia Makmur; and Robin, Director of PT Cakra Kaya Kreasi.
The case occurred while the government was implementing a policy to restrict and control CPO exports to ensure domestic cooking oil availability and price stability for the public. This policy was executed through the Domestic Market Obligation (DMO) mechanism, export approval requirements, and the imposition of export duties and palm oil levies. Under this policy framework, CPO was designated a national strategic commodity and classified under customs code HS 1511, without distinction based on Free Fatty Acid (FFA) content. Consequently, all forms of CPO, including high-acid CPO, remained subject to export restrictions and state obligations.
However, investigators found irregularities involving the engineered classification of export commodities. CPO that was substantively high-acid CPO was knowingly and deliberately claimed and treated as POME or Palm Acid Oil (PAO) using HS code 2306, which is intended for solid residues or waste. This classification manipulation was carried out to evade the CPO export control regime, allowing a commodity that was essentially CPO to be exported as if it were not, thereby avoiding or reducing state obligations.
The defendants are alleged not only to have been aware of the applicable legal provisions but also to have actively participated in devising, utilising, and allowing this deviant mechanism to persist. Based on a State Financial Loss Calculation Report by the Indonesian Financial and Development Supervisory Agency (BPKP), the case resulted in state financial losses. The investigation team has seized cash amounting to Rp 40 billion, along with assets including land, buildings, palm oil plantations, and vehicles valued at approximately Rp 696.5 billion. The defendants are charged under Article 603 in conjunction with Article 20 letter a or c of the National Criminal Code, or Article 3 in conjunction with Article 18 of Law Number 31 of 1999 concerning the Eradication of Corruption, as amended and supplemented by Law Number 20 of 2001.