Indonesia probes palm oil export under-invoicing as DSI takes shape
28/05/2026 (Indonesia Business Post) - Indonesia is investigating alleged under-invoicing practices in crude palm oil (CPO) exports after Finance Minister Purbaya Yudhi Sadewa revealed that several major exporters may have manipulated export values to reduce tax and levy obligations.
The case has also intensified scrutiny over commodity export practices as President Prabowo Subianto’s administration moves forward with the establishment of PT Danantara Swadaya Indonesia (DSI), a new state-backed entity aimed at tightening oversight of strategic commodity exports, including palm oil and coal. The government argues that stronger centralized monitoring is needed to prevent under-invoicing, offshore profit shifting, and state revenue losses linked to overseas affiliated trading companies.
Minister of Trade Budi Santoso responded to the allegations involving around 10 companies suspected of declaring export values lower than their actual worth. He emphasized that oversight of such practices does not fall under the authority of the Ministry of Trade, noting that the matter is more closely related to border control and law enforcement agencies.
“That is more on the border side. At the Ministry of Trade, export regulation is related to trade policy,” Budi said, as quoted by Katadata, Tuesday, May 26, 2026.
He explained that the ministry’s responsibilities are limited to formulating and implementing trade policies, including determining which goods are permitted for export or import and regulating the mechanisms governing such activities.
“We are more focused on regulation, whether goods are allowed to be exported or imported, how the import mechanism works, how the export mechanism works, and so on,” he added.
Budi also stated that recording transaction values is not within the ministry’s jurisdiction and said he had not yet reviewed the specific under-invoicing allegations involving the companies in question.
Finance Ministry hands over data to law enforcement
Earlier, Finance Minister Purbaya Yudhi Sadewa revealed that data on major companies suspected of manipulating export transactions, particularly in the CPO sector, had been submitted to the Attorney General’s Office.
Initially, Purbaya declined to disclose the names of the companies involved. However, he later identified PT Wilmar Nabati Indonesia and Musim Mas Group as among the major entities currently under investigation.
“I selected the 10 largest companies that were identified, but I have more than 15 companies that I will examine. This is only for CPO; in coal, there are also interesting findings,” Purbaya said on Friday, May 22, 2026.
He added that Indonesia’s Financial and Development Supervisory Agency (BPKP) has already begun investigating the alleged transaction manipulation.
Long-standing concerns in export practices
Purbaya noted that under-invoicing practices in commodities such as CPO and coal have long been a concern in Indonesia’s export sector, although the responsible parties had not been clearly identified until now.
The government is now tracing links between domestic exporters and their affiliated companies in Singapore, while also identifying the ultimate beneficial owners behind the transactions. Authorities are consolidating corporate transaction records to strengthen oversight and law enforcement efforts.
Despite the investigation, Purbaya stressed that the government does not intend to shut down the companies involved, but expects them to comply with applicable regulations.
The investigation is ongoing in coordination with the Attorney General’s Office.
CPO export probe flags possible tax losses
Purbaya disclosed that preliminary data from a sample of Indonesia’s largest palm oil exporters indicates widespread irregularities in export valuation, particularly under-invoicing in CPO transactions.
He said the findings were based on a random sample of the 10 largest exporters in the sector, all of which allegedly showed similar patterns of misconduct.
“I took the 10 largest companies, and all of them did it. So it can be concluded that they are all doing it,” he said, as quoted by DetikFinance, Monday, May 25, 2026.
The ministry estimates that the irregularities have already caused state losses of around US$84 million (approximately Rp1.48 trillion). Officials warned, however, that the total impact could be significantly higher if similar practices are found across a broader dataset beyond the initial sample.
“(US$84 million) is only from that sample that was taken. If we include everything, it would certainly be higher because this is only a very small portion, just three ships,” Purbaya said.
According to the minister, the suspected scheme involves exporters shipping CPO to affiliated companies in Singapore at artificially low declared prices before the goods are resold in destination markets at significantly higher values.
In one example, an Indonesian exporter reported an export value of US$2.6 million (approximately Rp46.0 billion), while import records in the United States showed US$4.2 million (approximately Rp74.3 billion), a discrepancy of about 57 percent.
In another case, export records showed a declared value of US$1.44 million (approximately Rp25.5 billion), while corresponding import data reached around US$4 million (approximately Rp70.8 billion), representing a discrepancy of nearly 200 percent.
Purbaya added that he has already reported the list of suspected companies to President Prabowo Subianto, signaling that enforcement efforts are being escalated.
He also stressed that addressing such practices could significantly improve state revenue collection and strengthen compliance in the export sector.
The findings add momentum to ongoing investigations into export valuation discrepancies in Indonesia’s CPO industry, particularly involving cross-border transactions and affiliated entities abroad, as authorities continue to trace ownership structures and reconcile inconsistencies in trade data.