Indonesia has begun a sweeping crackdown targeting major palm oil producers over allegations of under-invoicing and transfer pricing in commodity exports, raising pressure on some of the country’s most powerful agribusiness groups. Finance Minister Purbaya Yudhi Sadewa confirmed that Wilmar Group, Musim Mas, and “it seems” Salim Ivomas are among the companies under investigation, as authorities examine pricing practices in Indonesia’s lucrative palm oil sector.
The minister said the government already possesses data on the 10 largest exporters and is scrutinizing discrepancies between reported export volumes and transaction values. He alleged that in some cases, goods were being exported at roughly half of their actual domestic value, describing the pattern as under-invoicing and smuggling amounting to as much as 50 percent, though he did not provide supporting evidence. Officials also suspect the use of Singapore-based trading companies as part of the structure behind the transactions.
According to Sadewa, the Finance Ministry is conducting an initial investigation before coordinating further action with the Financial and Development Supervisory Agency and the Attorney General’s Office. He added that authorities are also using artificial intelligence tools to identify additional companies involved in similar practices, saying the technology allows them to detect cases more quickly. So far, around 20 companies have reportedly been placed under investigation, with enforcement efforts initially focused on the largest exporters.
Wilmar, one of the world’s largest agribusiness firms, is headquartered in Singapore and linked to Indonesian businessman Martua Sitorus and Singaporean businessman Kuok Khoon Hong. Musim Mas is owned by the Indonesian Bachtiar Karim family, while Salim Ivomas is part of the Salim Group controlled by tycoon Anthoni Salim’s family. None of the companies have responded to requests for comment. Wilmar has also previously been implicated in a bribery case related to export permits for crude palm oil between 2021 and 2022, with Indonesian court rulings resulting in prison sentences and corruption convictions involving multiple subsidiaries and related firms.
The government stressed that its actions are aimed at enforcing compliance rather than shutting down the palm oil industry, while emphasizing that smaller companies may also face similar scrutiny. President Prabowo Subianto has separately claimed that Indonesia has suffered losses of up to 15,000 trillion rupiah due to under-invoicing practices and announced plans to establish Danantara Sumberdaya Indonesia, a state-owned trading company under the sovereign wealth fund Danantara. The entity is expected to oversee exports of palm oil, coal, and ferroalloys by acting as a sole purchasing and trading body once fully implemented, although detailed regulations have yet to be released.
