Purbaya investigates alleged CPO export under-invoicing

Finance Minister Purbaya Yudhi Sadewa is investigating allegations of under-invoicing in crude palm oil (CPO) exports. The government has found significant price discrepancies between Indonesia’s export data and destination country prices, focusing on 10 major exporters. The allegations point to sales through Singapore-based trading companies before goods reach final destinations.

“Price here, exported there, is half the price from here to there, destination in America. So under-invoicing is around 50 per cent,” Purbaya said at the Coordinating Ministry for Economic Affairs office in Jakarta on Tuesday, 26 May 2026.

According to him, out of around 20 companies checked, attention is focused on 10 large exporters. The government found the same pattern among these companies. “We focus on the big ones, they all do it,” he said.

He explained that the indications show a difference in selling prices despite the same export volume. “Volume is the same. Prices differ,” Purbaya said.

The government also found evidence of transfer pricing schemes via Singapore trading companies. In this pattern, CPO is sold to intermediary companies before being forwarded to final buyers in other countries.

“So these 10 companies sell to Singapore, a trading company. Here sell to there, there sell to there,” he said.

Preliminary findings have been handed over to law enforcement agencies. The Finance Ministry is collaborating with the Financial Supervisory Agency (BPKP) and the Attorney General’s Office in investigating the case.

The government is also considering recovering unpaid taxes for several years, given the alleged practice has been ongoing for a long period.

However, the government stressed that enforcement actions are not aimed at shutting down companies. “We won’t shut down the companies, but they must pay the due taxes according to the investigation findings,” Purbaya said.