Jakarta. Finance Minister Purbaya Yudhi Sadewa on Tuesday identified several major companies included in the government’s findings on alleged under-invoicing and transfer pricing in crude palm oil exports through trading companies in Singapore.

Purbaya said the companies were among the 10 largest crude palm oil exporters currently under government scrutiny for allegedly failing to report sales prices accurately, potentially causing losses in state tax revenue.

“We have all the data on the 10 largest CPO exporters,” Purbaya said in Jakarta.

Asked which companies were included in the list, Purbaya mentioned Wilmar, Musim Mas, and Salim Ivomas Pratama, saying those companies were likely among the firms identified in the government’s findings.

When asked about several other company names that had circulated among journalists, Purbaya declined to confirm them, saying he could not recall the details.

Purbaya said the alleged practices involved exports routed through trading companies in Singapore. Under the suspected scheme, companies exported CPO from Indonesia to Singapore at recorded prices below market value before the commodity was resold to destination countries at higher prices.

“The 10 companies sold to trading companies in Singapore, and from there the products were shipped everywhere,” Purbaya said.

He said authorities suspected transfer pricing, with Indonesian CPO allegedly sold cheaply to Singapore before being re-exported at significantly higher prices.

“The indications point more toward transfer pricing. The export data were lower than they should have been, possibly by as much as 50%,” Purbaya said.

According to the minister, the government found a substantial gap between the declared export value from Indonesia and the subsequent selling price in destination markets. He said the government had obtained the data around three months ago and that further examination was still underway.

The government investigation, which now involves the Attorney General’s Office, is aimed at ensuring the companies pay any outstanding obligations owed to the state, Purbaya said.

“What is clear is that we will not make these companies shut down, but they must pay their obligations based on the examination results,” he said.

He added that similar practices may have occurred over the past several years, making it necessary for the government to review audit findings comprehensively before deciding on further action.

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