Lang
Eleven individuals and entities have been charged in connection with an alleged palm oil export corruption scheme between 2022 and 2024 that prosecutors claim resulted in state losses amounting to Rp7.37 trillion (US$414.6 million).
The charges were presented at the Central Jakarta Corruption Court on August 18, 2026. Prosecutors allege that the defendants manipulated the classification of crude palm oil (CPO) exports to falsely categorize them as other palm oil-derived products, which are subject to lower export duties and levies. The alleged losses, based on an audit by the Financial and Development Supervisory Agency (BPKP), were calculated at Rp7.3 trillion (US$415 million).
Prosecutors assert that Lila Harsyah Bakhtiar, a government industry policy analyst, drafted a palm oil 'downstreaming' roadmap at the behest of R. Fadjar Donny Tjahjadi, who was then the Customs Directorate's technical director. This draft allegedly reclassified liquid CPO with free fatty acid (FFA) levels above 20% as palm acid oil (PAO) or palm oil mill effluent (POME), placing it under tariff codes typically used for other residue products.
The prosecution stated that this classification was adopted without proper laboratory testing or sufficient scientific justification and relied on an appendix to a trade ministry regulation that had already been revoked. Furthermore, the defendants reportedly failed to apply testing criteria required under Indonesia's national standard for crude palm oil.
This scheme purportedly allowed CPO, which should have been declared under HS Code 1511.10.00, to be exported under HS Codes 2306.60.90, 2306.90.90, and 1517.90.69, leading to reduced export duties and levies.
Prosecutors also alleged that Fadjar approved the draft roadmap while it was still under discussion and not formally enacted, permitting its use as a reference for laboratory testing and export activities. The alleged manipulation then extended to laboratory examinations at the Medan Customs and Excise Laboratory, where examiners were allegedly directed to produce results classifying CPO shipments from several exporters as POME, PAO, HAPOR, or mixed oil.
The exporters named in the indictment include Edy Susanto, Yusrin Husin, Tony, Randy Tjahjadi Maliwarna, Van Ricardo, Felix, Erwin, and Robin. According to prosecutors, these exporters allegedly arranged CPO purchases from palm oil mills and traders, recording these commodities in export documents as PAO or POME despite their actual classification as CPO with FFA levels exceeding 20%.
Lila was also accused of receiving Rp25 million (US$1,409) from palm oil industry players through an intermediary in connection with preparing the draft classification roadmap. Prosecutors claim the alleged scheme generated substantial financial benefits for several defendants and other involved parties.
Muhammad Zulfikar was allegedly entitled to a fee of Rp225 per kilogram (kg) on exports handled by Tony through two companies between 2022 and 2024, with the total fee estimated at over Rp97 billion (US$5.5 million). Other alleged illicit gains included over Rp417 billion (US$23.5 million) for Edy Susanto, Rp445 billion (US$25.1 million) for Yusrin Husin, Rp763 billion (US$43 million) for Tony, and over Rp1.02 trillion (US$57.6 million) for Randy Tjahjadi Maliwarna.
Van Ricardo was allegedly enriched by over Rp563 billion (US$31.8 million), Felix by over Rp100 billion (US$5.6 million), Erwin by over Rp493 billion (US$27.8 million), and Robin by over Rp7 billion (US$395,000). Prosecutors additionally alleged that 15 other legal entities collectively benefited by more than Rp3.37 trillion (US$190.3 million).
The defendants face charges under Indonesia's anti-corruption law and the 2023 Criminal Code, with prosecutors presenting the alleged offenses as both primary and subsidiary charges.
Source: Indonesia Business Post