Purbaya Exposes 10 CPO Firms Paying Minimal Taxes as Dollars Are Smuggled Abroad

Jakarta, CNBC Indonesia – Finance Minister Purbaya Yudhi Sadewa revealed manipulation practices by Indonesian palm oil (CPO) companies. He said that as a result, state revenue was not in line with what it should be, and foreign exchange was parked abroad. He spoke at the Jogja Financial Festival 2026 at the Jogja Expo Center, Daerah Istimewa Yogyakarta, on Friday (22 May 2026). He said this came to light after BPK reported to President Prabowo Subianto about the large number of companies engaging in under invoicing. The companies, he added, manipulate export prices.

Then, he stated, President Prabowo ordered Purbaya to follow up on the report immediately.

‘Prices are manipulated to be lower than the sale price, or sometimes volumes are reduced. So one could say some of it is smuggled. After that, he asked me to study it,’ Purbaya said.

‘Thus I examined the 10 largest CPO companies in Indonesia. I random checked how they export abroad. It turns out exports to the US are usually not direct; they go through intermediary traders in Singapore,’ Purbaya said.

In practice, he continued, the companies report export prices only half of what they are sold for from Singapore to the US.

‘Thus I checked. Their intermediary traders as well. The price to Singapore is half the price from Singapore to America,’ Purbaya revealed.

‘Thus as Finance Minister I am at a loss. The export tax I receive is only half. Income tax also half. Foreign exchange is less and parked abroad,’ he concluded.

Purbaya also revealed his plan to tighten oversight at Customs. However, he noted, leaks can occur at Customs.

‘Thus the President thinks, well, let’s sort this out too. We will create an exporter body, called DSI, Danantara Sumberdaya Indonesia. All exports can only pass through that. Those who sell only DSI to the world markets,’ he said.

‘With that approach, what was previously under invoicing disappears. For me, I stand to gain; my income could double, maybe more. Because of income tax, other income, export tax. The important thing is our goods are not smuggled abroad. My money is larger and can be used for government programmes, including education and regional development,’ he asserted.

Therefore, he said, President Prabowo’s move to control the export of natural resources through the DSI is a strategic step.