InfoSAWIT, JAKARTA – Prior President Joko Widodo published a Decision of President Indonesian Republic Number 9 / 2023 about Task Force for Improving Palm Oil Industrial Governance and Optimizing Revenue for the Country in March 2023.

The reason was that industrial development in palm oil commodity in Indonesia keeps increasing in productivity but from audit result, there are issues in the governance that potentially delivers losses for revenue for the country from tax and non-tax.

After the policy was published, Coordinator Minister in Maritime and Investment, Luhut Panjaitan followed up palm oil audit result which was running. Badan Pengawasan Keuangan dan Pembangunan (BPKP) revealed that of 14,6 million hectares palm oil plantations in Indonesia, only 7,3 million hectares just paid taxes.

After the first audit done, Pandjaitan ordered BPKP to audit palm oil permits. In fact, palm oil plantations laid about 20,4 million hectares – the planted ones laid about 16,8 million hectares and 9 million hectares do not pay taxes.

From the finding which was reported to President Joko Widodo, Ministry of Finance through General Directorate of Tax was ordered to follow up.

Chairman of Indonesian Palm Oil Association (IPOA), Eddy Martono said, the information about 9 million hectares that do not pay taxes, is unknown still. “The members of IPOA, as I consider, would be difficult if they do not pay tax,” he said to InfoSAWIT, Wednesday (10/5/2023).

The reason is that, Eddy continued, some IPOA members are in audit process to get Indonesian Sustainable Palm Oil (ISPO) or some that got it, should show tax payment, as one condition.

Eddy told that the government is transparent in tax for palm oil companies. That is why every process should be always running as usual. “If any indication some members (of IPOA) do not pay tax, get it through General Directorate of Tax,” he said. (T2)