Minister of Finance Uncovers Allegations of CPO Export Manipulation: Prices Can Rise 4 Times in Singapore

Purbaya Yudhi Sadewa revealed the alleged practice of manipulating export prices or under-invoicing on CPO and coal commodities. (Teddy Kurniawan VOI)

JAKARTA - Finance Minister Purbaya Yudhi Sadewa revealed the alleged practice of export price manipulation or under-invoicing on CPO and coal commodities. The method is said to involve trading companies in Singapore with a price difference that can reach four times.

Purbaya said the BPKP and the Attorney General's Office had moved to follow up on the findings. He admitted that he was still waiting for a report on the progress of the examination from the two institutions.

"I will ask for a report from them next week, what is the progress," said Purbaya after a limited meeting with President Prabowo Subianto at the Presidential Palace Complex in Jakarta, Friday, May 22.

According to Purbaya, this practice is basically a manipulation of export prices.

"Even though the name is cool, under-invoicing and others, but basically it's cheating," he said.

He explained that the goods were first sent to Singapore through a trading company that was still affiliated with the exporter. From there, the goods were sold again to the destination country at a much higher price.

"From here to there, to the destination at a price that is double or more. Some are 200 percent, some are 4 times," said Purbaya.

The government examined the shipping data in detail, including the movement of ships and export transactions from a number of large CPO companies.

Purbaya said that the practice was found during an examination of companies tested by the government.

"So confirm, from the data we checked, they did it," he said.

He said that this practice was previously difficult to detect because customs data only recorded exports from Indonesia to Singapore. After that, the chain of trade was not tracked.

To trace the pattern, the government began using AI and buying more complete trade data.

"It's not big data from the UN database, but it's true ship by ship," said Purbaya.

He did not want to reveal the name of the company that was examined. However, he said the government had checked more than 15 companies and the initial focus was on the 10 largest CPO exporters.

Besides CPO, the government also found similar indications in the coal sector.

"There are also interesting discoveries of coal, later we will also discuss with BPKP," he said.

According to Purbaya, the practice of under-invoicing has long been an issue. However, previously the pattern and perpetrators were not clear.

He emphasized that the government did not intend to shut down the company. However, the company is asked to carry out its obligations in accordance with the rules.

"Later, if it's done, we won't kill the company. We just ask them to do what they should do," said Purbaya.

Purbaya also said the government would calculate the potential that could be recovered from the practice.

"I'll see how much I can take from them," he said.