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Agricultural engineering

Sunday
09 Nov 2025

Indonesia Blocks Illegal CPO Export Worth Rp 28.7 Billion

09 Nov 2025  by ukragroconsult.   
Indonesia’s Finance Ministry and National Police have intercepted an illegal export attempt involving crude palm oil derivatives valued at Rp 28.7 billion (around US$1.7 million). The joint operation, conducted with the Customs Directorate General, Tax Directorate General, and the 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 involves PT MMS, which allegedly tried to export the goods without following 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 prevent potential state revenue losses. “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 attended the announcement, noted that the operation supports President Prabowo Subianto’s directive to curb illegal exports and tax evasion. “This task force was formed to reduce potential leakage of state revenue. 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 said.

He emphasized that law enforcement will be intensified to prevent revenue losses that could 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,” Listyo added.

The seizure highlights the government’s focus on securing state revenue from Indonesia’s palm oil sector, which is a major contributor to the economy. The coordinated effort demonstrates the use of cross-agency inspections and regulatory enforcement to prevent tax evasion and illegal exports.

Authorities indicated that further investigations will follow to hold the responsible parties accountable and ensure stricter compliance with export regulations. The operation also serves as a warning to companies attempting to bypass duties or misdeclare goods, reinforcing the government’s commitment to transparency and fiscal discipline.

By preventing this attempted illegal export, the Finance Ministry and National Police aim to safeguard revenue streams that are critical for funding public programs and supporting economic stability. The coordinated action reflects Indonesia’s broader efforts to strengthen oversight of strategic sectors while maintaining a fair and accountable trading environment.

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