Indonesia Blocks Illegal CPO Export Worth Rp 28.7 Billion

The Finance Ministry and the National Police say they have foiled an illegal export attempt involving crude palm oil derivatives worth Rp 28.7 billion (about US$1.7 million). The joint operation, which included the Customs Directorate General, the Tax Directorate General, and the National Police’s special task force on state revenue, uncovered 87 containers weighing 1,802 tons at Tanjung Priok Port in North Jakarta.

Customs chief Djaka Bhudi Utama said the case involved a company identified as PT MMS, which allegedly attempted to export the goods without complying with export duty rules and restrictions.

“The goods were declared as fatty matter weighing around 1,802 tons and worth Rp 28.7 billion. On the initial documents, they were not subject to export duties and were not listed as restricted items,” Djaka told reporters on Thursday.

He added that the Finance Ministry, in coordination with the Police task force, will strengthen upstream oversight, including inspections and law enforcement, to plug potential state revenue leaks.

“Cross-agency collaboration between the Industry Ministry, Trade Ministry, Finance Ministry, National Police, and other technical institutions is crucial to ensure Indonesia’s palm oil industry is more transparent, fair and accountable,” Djaka said.

National Police Chief Listyo Sigit Prabowo, who also attended the announcement, said the effort aligns with President Prabowo Subianto’s directive to curb losses from illegal exports and tax evasion schemes.

“This task force was formed to reduce potential leakage of state revenue,” Listyo said. “We found 87 containers suspected of violating export requirements for CPO derivative products. The modus involved attempts to evade taxation, something that has occurred repeatedly.”

Listyo stressed that law enforcement will be intensified to prevent revenue losses that undermine fiscal programs and public welfare priorities.

“The President expects state revenue to be truly optimal, with minimal leakage, so the funds can instead be used for programs that support and improve the well-being of the people,” he said.

Tags: export, Indonesia, Crude palm oil, palm oil, duties