This tax evasion practice have been going on for decades. Only now indonesia taking action. But other neighbouring countries business doing same thing

[syed putra]

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Wilmar, Musim Mas among palm-oil firms in Indonesia under probe for suspected export under-invoicing​

The probe comes just days after Jakarta unveiled plans to tighten control over commodity exports

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Elisa Valenta​

Published Tue, May 26, 2026 · 06:33 PM
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• Indonesia's Finance Minister Purbaya Yudhi Sadewa says figures in the reported export data are roughly 50% lower than the actual numbers. PHOTO: BLOOMBERG

[JAKARTA] Indonesia is investigating several exporters of crude palm oil (CPO) for suspected under-invoicing and transfer-pricing practices, in a move that underscores Jakarta’s broader effort to tighten control over strategic commodity flows.

Local media reports quoted Finance Minister Purbaya Yudhi Sadewa as saying on Tuesday (May 26) that the authorities’ monitoring system had flagged 10 exporters as having allegedly engaged in those practices.

Among the companies under investigation are Singapore-based Wilmar International and Musim Mas.


Under-invoicing is the practice of declaring a lower export value in order to shift profits to lower-tax jurisdictions.

Purbaya said that the companies shipped or sold CPO to trading firms in Singapore, which then resold the cargo to the United States after price markups of as much as 50 per cent, raising concerns that a portion of export value may have been moved offshore.

He said that while domestic export documents in Indonesia appeared accurate, inconsistencies emerged in transit records and destination pricing, suggesting the use of offshore trading hubs to book higher margins outside the country.

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“The records here are correct, but the ones there are not. So their reported export data is lower than it should be, roughly 50 per cent below the actual figure,” he said, adding that the issue appears consistent with transfer-pricing practices rather than administrative errors.

The Business Times has reached out to the Wilmar group and Musim Mas for comment.

The probe comes as Indonesia moves to centralise oversight of key commodities including coal, CPO and ferroalloys through a state-entity export body, with the aim of curbing under-reporting, tax leakage and offshore profit shifting.

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Wilmar, Musim Mas among palm-oil firms in Indonesia under probe for suspected export under-invoicing​

The probe comes just days after Jakarta unveiled plans to tighten control over commodity exports
Summarise
Add BT as a preferred source

Elisa Valenta​

Published Tue, May 26, 2026 · 06:33 PM
阅读简体中文版 (beta)

• 

• Indonesia's Finance Minister Purbaya Yudhi Sadewa says figures in the reported export data are roughly 50% lower than the actual numbers. PHOTO: BLOOMBERG

[JAKARTA] Indonesia is investigating several exporters of crude palm oil (CPO) for suspected under-invoicing and transfer-pricing practices, in a move that underscores Jakarta’s broader effort to tighten control over strategic commodity flows.
Local media reports quoted Finance Minister Purbaya Yudhi Sadewa as saying on Tuesday (May 26) that the authorities’ monitoring system had flagged 10 exporters as having allegedly engaged in those practices.
Among the companies under investigation are Singapore-based Wilmar International and Musim Mas.
Under-invoicing is the practice of declaring a lower export value in order to shift profits to lower-tax jurisdictions.
Purbaya said that the companies shipped or sold CPO to trading firms in Singapore, which then resold the cargo to the United States after price markups of as much as 50 per cent, raising concerns that a portion of export value may have been moved offshore.
He said that while domestic export documents in Indonesia appeared accurate, inconsistencies emerged in transit records and destination pricing, suggesting the use of offshore trading hubs to book higher margins outside the country.

Asean Intelligence​

Get insights into businesses across South-east Asia
Get the free report​

“The records here are correct, but the ones there are not. So their reported export data is lower than it should be, roughly 50 per cent below the actual figure,” he said, adding that the issue appears consistent with transfer-pricing practices rather than administrative errors.
The Business Times has reached out to the Wilmar group and Musim Mas for comment.
The probe comes as Indonesia moves to centralise oversight of key commodities including coal, CPO and ferroalloys through a state-entity export body, with the aim of curbing under-reporting, tax leakage and offshore profit shifting.