InfoSAWIT, JAKARTA – Allegations of crude palm oil (CPO) export manipulation have sparked renewed scrutiny in Indonesia, with a member of the House of Representatives calling for a full criminal investigation into companies suspected of using under-invoicing and transfer pricing schemes to reduce export values and tax liabilities.
Arif Rahman, a member of Commission IV of the Indonesian House of Representatives (DPR RI), urged authorities to pursue legal action beyond administrative penalties against companies found guilty of manipulating export transactions.
According to information obtained by InfoSAWIT from the NasDem Party, Arif argued that financial penalties alone would be insufficient if state losses were proven.
“Companies involved should face firm legal action. It is not enough to impose fines; criminal investigations must be conducted thoroughly because such practices harm the state through under-invoicing schemes,” he said.
Arif also highlighted alleged transfer pricing practices involving trading entities in Singapore, which he claimed may have been used to minimize tax obligations and distort actual export values.
According to the legislator, companies proven to have engaged in such activities must be held fully accountable under Indonesian law.
He further argued that the payment of administrative fines should not automatically eliminate potential criminal liability if evidence shows that state revenue losses occurred through corruption, tax manipulation, or related offenses.
“Even if fines have been paid, criminal proceedings should continue if there are indications of money laundering linked to underlying crimes that caused losses to the state,” he said.
The lawmaker’s remarks followed statements by Finance Minister Purbaya Yudhi Sadewa, who recently disclosed that authorities had identified indications of export price manipulation by several palm oil exporters.
According to the minister, the government has been reviewing relevant data for several months and is currently conducting a deeper investigation into the matter.
The alleged scheme reportedly involved transfer pricing arrangements through Singapore-based trading companies, where CPO exports were recorded at lower values before being resold to buyers in the United States at significantly higher prices. Reports suggest price discrepancies may have reached 50 percent or more.
Arif stressed that if the allegations are substantiated, law enforcement agencies must ensure comprehensive action is taken to deter similar practices in the future and strengthen governance within Indonesia’s palm oil industry.
“Government authorities must act decisively and immediately examine palm oil companies suspected of involvement in these practices,” he said. (T2)
