Indonesia Uncovers CPO Export Manipulation Scheme by Businesses | CNN Indonesia

Jakarta, CNN Indonesia — Indonesian Finance Minister Purbaya Yudhi Sadewa has revealed a scheme involving manipulation of crude palm oil (CPO) export reports, including under-invoicing, allegedly carried out by several businesspeople.

According to Minister Purbaya, one tactic involves exporters reporting CPO shipments to the United States as if they are only transiting through countries like Singapore. This results in significantly lower reported export values to Indonesia than the actual prices in the final destination country.

“What is reported to us is only the value to Singapore. The reported price is, on average, half the price in America. The profit is taken by intermediary companies in Singapore,” Purbaya stated during a working meeting with Commission XI of the Indonesian House of Representatives on Wednesday, February 4, 2026.

The Finance Ministry detected this practice after implementing digital systems and artificial intelligence (AI) to cross-reference data from various countries. Initial investigations have focused on approximately ten large companies, revealing significant manipulation of export values.

“People can now obtain that data. There is quite extraordinary manipulation on a ship-by-ship basis,” Purbaya explained.

The government is currently investigating whether transaction data from destination countries can be used as evidence in court. However, Purbaya affirmed that the government already possesses strong initial evidence to pursue the matter.

These schemes came to light as the government was strengthening oversight in the customs and taxation sectors.

“I must fully implement tax and customs instruments to reduce leakage and detect under-invoicing as much as possible,” he emphasized.

The revelation of these alleged practices comes amid a broader investigation into potential corruption within the palm oil industry. On January 28 and 29, 2026, the Attorney General’s Office (AGO) conducted searches at several locations, including the residence of former Environment and Forestry Minister Siti Nurbaya Bakar, as part of a probe into alleged corruption in plantation and palm oil governance. The AGO confirmed the investigation spans from 2015 to 2024.

The AGO’s investigation is separate from mining governance, focusing specifically on the management of plantations and the palm oil industry. Investigators seized documents and electronic evidence during the searches, and Siti Nurbaya is expected to be questioned as part of the inquiry.

These developments also follow the recent signing of a trade agreement between the United States and Indonesia in July 2025. The agreement, reached after what Indonesian President Prabowo Subianto described as a “grueling process,” involves the U.S. Imposing a 19% tariff on Indonesian exports, down from a brief 32% tariff imposed earlier in the year. Indonesia, in turn, committed to purchasing $15 billion in U.S. Energy products, $4.5 billion in American agricultural products, and 50 Boeing jets.

Meanwhile, CNN Indonesia, a national media company, is currently facing industrial relations disputes in two district courts, in Central Jakarta and Surabaya. The disputes stem from allegations by workers that CNN Indonesia has been underpaying wages since June-August 2024.