Palm Oil Business Actors Are Urged To Fulfill Tax Obligations

Palm Oil (antaranews)

The Directorate General of Taxes (DGT) of the Ministry of Finance reminded palm oil industry business players to fulfill tax obligations.

Director General of Taxes Bimo Wijayant said that as a follow-up to the disclosure of the latest modes of export violations, DGT has identified a number of other allegations of incompatibility, including under-invoicing practices and the use of fictitious/TBTS invoices.

"We urge you to immediately make voluntary improvements before the DGT takes law enforcement measures against parties who are indicated to be non-compliant," said Bimo quoting Antara.

Bimo emphasized the Government's commitment to strengthening the governance of the palm oil industry to be more transparent, accountable, and sustainable and able to maintain competitiveness in the global market.

These improvements are needed to improve compliance and strengthen state revenues.

DGT, said Bimo, is committed to carrying out professional and proportional supervision. This tax authority is also open to dialogue spaces with business actors to ensure compliance can increase without hampering economic activity.

Meanwhile, Minister of Finance Purbaya Yudhi Sadive said the joint operation of the Ministry of Finance which succeeded in uncovering the smuggling of CPO derivative products in early November 2025 was not aimed at scaring business actors.

On the other hand, the joint operation aims to ensure business activities run according to the provisions of the legislation.

Purbaya added that the Government wants to create a healthy and fair business climate. Fiscal policies will be directed to provide benefits for business actors while strengthening state revenues.

"If there are difficulties or any problems, report them to me. We will clean them up. What is clear is that we want this palm oil industry to remain the backbone of the Indonesian industry," said Purbaya.

For the record, based on the State Revenue and Expenditure Budget (APBN) report as of the end of October 2025, the realization of net tax revenues reached Rp1,459.03 trillion or equivalent to 70.2 percent of the target.

In detail, the corporate income tax was recorded at IDR 237.56 trillion, or corrected 9.6 percent year on year (yoy) compared to the same period the previous year.

Then, PPh for individuals and PPh 21 were recorded at Rp191.66 trillion, or corrected 12.8 percent (yoy) compared to the same period the previous year.

Then, the final PPh, PPh 22 and PPh 26 were recorded at IDR 275.57 trillion, or corrected 0.1 percent (yoy) compared to the same period the previous year.

Furthermore, VAT revenues and sales tax on luxury goods (PPnBM) were recorded at Rp556.61 trillion, or corrected 10.3 percent (yoy) compared to the same period the previous year. Other tax revenues were recorded at Rp197.61 trillion.