Attorney General’s Office Probes Misuse of Palm Oil Mill Effluent (POME) Export Permits

Palm Oil Magazine
Illstration. The Attorney General’s Office widens its investigation into the palm oil industry, probing alleged corruption in the export of palm oil mill effluent (POME). Photo by: Sawit Fest 2021 / Danang Firmanto

PALMOILMAGAZINE, JAKARTA — The Attorney General’s Office (AGO) has launched an investigation into alleged corruption linked to the export of palm oil mill effluent (POME), a liquid by-product from crude palm oil processing. The case, believed to have occurred in 2022, has now entered the formal investigation phase, with several witnesses questioned and key documents secured from multiple locations.

Investigators from the AGO’s Gedung Bundar division carried out a search at the Directorate General of Customs and Excise on Wednesday (Oct 22), as part of efforts to collect evidence and strengthen preliminary findings.

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“Yes, investigators have taken several legal measures, including searching the Customs office to obtain relevant data and information,” said AGO spokesperson Anang Supriatna in Jakarta on Friday (Oct 24).

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Anang explained that the investigation is ongoing, and details on the parties involved or the potential financial losses to the state have not yet been disclosed.
“As this is still an early-stage investigation, we cannot reveal too much at this point. The priority is to ensure all evidence is gathered properly and lawfully,” he added.

He confirmed that investigators had questioned several witnesses and secured important documents during the search. However, he emphasized that the steps taken remain preliminary as part of efforts to uncover potential irregularities in POME export activities.

 

Focus on Suspected Irregularities in POME Export

The case centers on the export of POME — a palm oil processing waste product that is subject to strict environmental and export regulations due to its industrial waste content. Preliminary suspicions suggest there may have been permit manipulation or misuse of export facilities, potentially causing losses to the state.

However, the AGO has not yet clarified whether the suspected corruption involves private sector actors, government officials, or both.
“The investigation is ongoing. Our team has conducted legal actions, including searches at several locations, to collect data and evidence for further legal proceedings,” Anang stated.

 

Customs Confirms Office Search Related to POME Case

Director General of Customs and Excise, Djaka Budi Utama, confirmed that AGO investigators had conducted a search at the Customs headquarters. He stated that his office was fully cooperating with the ongoing investigation.

“Yes, it’s true, the search was related to the alleged POME case. They are seeking data for the investigation, and we are open to assisting,” Djaka said at the Ministry of Finance complex, as reported by Detik on Friday (Oct 24).

The investigation adds to a series of major legal actions by the AGO in the palm oil sector, following the 2022 corruption case involving the export of crude palm oil (CPO) by several large companies.

By expanding its probe to include palm oil waste management, the AGO underscores the government’s commitment to ensuring comprehensive oversight in the palm oil industry — from production and distribution to export activities. (P2)

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