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NewsOils and Fats Sector Coverage

Indonesia Foils Illegal Crude Palm Oil Export Worth 28.7 Billion Rupiah

Fats and oils processing
August 20, 2026
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زيت النخيل أصبح وقودا لسيارات السباقات

Indonesia's Finance Ministry and National Police have announced the foiling of an illegal attempt to export crude palm oil derivatives worth 28.7 billion rupiah (about US$1.7 million). The joint operation, involving the Directorate General of Customs, the Directorate General of Taxes, and the National Police's special task force on state revenue, uncovered 87 containers weighing 1,802 tonnes at Tanjung Priok Port in North Jakarta.

Djaka Budi Utama, head of Customs, said the case involved a company known as PT MMS, which allegedly attempted to export the goods without complying with export duty rules and restrictions.

Speaking to reporters on Thursday, Djaka said: "The goods were declared as fatty materials weighing approximately 1,802 tonnes and valued at 28.7 billion rupiah. According to preliminary documents, these materials were not subject to export duties and were not listed as restricted items."

He added that the Finance Ministry, in coordination with the police task force, would strengthen oversight at the initial stages, including inspections and law enforcement, to close potential gaps in state revenue.

Djaka stressed that "inter-agency cooperation, including between the Ministry of Industry, the Ministry of Trade, the Finance Ministry, the National Police, and other technical institutions, is essential to ensure that Indonesia's palm oil industry becomes more transparent, fair and accountable."

National Police Chief Listyo Sigit Prabowo, who also attended the announcement, said the effort is in line with directives from President Prabowo Subianto to curb losses from illegal exports and tax evasion schemes.

Listyo added: "This special task force was set up to reduce potential leakage of state revenue. We found 87 containers suspected of violating export requirements for crude palm oil derivative products. The method involved attempts at tax evasion, something that has occurred repeatedly."

Listyo confirmed that law enforcement would be intensified to prevent revenue losses that undermine fiscal programmes and public welfare priorities.

He concluded: "The President expects state revenue to be truly optimal, with minimal leakage, so that the funds can instead be used for programmes that support and improve the welfare of the people."

Source: Al Mal Forum