Finance Minister Purbaya: Palm Oil Industry Remains the Backbone of Indonesia’s Economy

Palm Oil Magazine
Finance Minister Purbaya Yudhi Sadewa urges stronger industry cooperation as the Tax Directorate General intensifies efforts to curb under-invoicing and boost compliance in the strategically vital palm oil sector. Photo by: Special

PALMOILMAGAZINE, JAKARTA — The government has reaffirmed its commitment to strengthening tax compliance in Indonesia’s palm oil sector, one of the country’s most vital economic contributors. This was underscored during a Tax Compliance Outreach held by the Directorate General of Taxes (DJP) at the Cakti Buddhi Bhakti Hall, DJP Headquarters, attended by around 200 industry players representing 137 strategic taxpayers.

Finance Minister Purbaya Yudhi Sadewa made an unannounced appearance at the event, emphasizing the importance of close collaboration between businesses and the government to safeguard the integrity of the tax system.

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“Thank you to everyone who managed to attend. I wasn’t originally scheduled to be here—this was sudden. Pak Bimo said earlier that if the Minister shows up, hopefully tax revenues will rise significantly,” Purbaya joked, while stressing that the outreach reflects ongoing efforts to boost compliance and optimize state revenue.

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Responding to the joint operation by the Finance Ministry and National Police that uncovered smuggling of CPO derivative products in early November 2025, Purbaya clarified that the crackdown was never intended to create fear among industry players.

“If you face difficulties or any kind of problem, report it to me and we’ll resolve it. What’s important is that this industry remains the backbone of Indonesia’s economy,” he stated in an official explanation received by Palmoilmagazine.com on Wednesday (3/12/2025).

He reiterated that the government aims to build a fair and healthy business environment. Fiscal policies, he said, are designed to benefit the industry while strengthening national revenues.

“To our industry partners, we ask for your cooperation so that everything runs smoothly and your contributions to the nation can be maximized,” he added.

Tax Office Flags Under-Invoicing, Fake Invoices

Director General of Taxes Bimo Wijayanto revealed that following the recent export violation case, DJP has identified additional potential irregularities in the sector. These include suspected under-invoicing practices and the use of fake invoices or TBTS-based transactions.

“In today’s outreach, we urge you to make voluntary corrections before DJP is required to take legal measures against parties indicated to be noncompliant,” Bimo said.

He emphasized the government’s commitment to making the palm oil sector more transparent and accountable while maintaining Indonesia’s competitiveness in global markets.

“Let’s use this moment to take concrete steps to improve compliance and strengthen state revenue,” he added.

DJP also assured that its supervisory measures will remain professional and proportional, without disrupting legitimate economic activity. Dialogue channels will stay open to ensure tax obligations can be fulfilled effectively and constructively.

The event was also attended by the Chair and Vice Chair of the Special Task Force for State Revenue Optimization (OPN), Herry Muryanto and Novel Baswedan, along with representatives from the Prosecutor General’s Office’s Forest Area Enforcement Task Force (PKH), including Dedie Tri Haryadi, Director of Human Rights at the Attorney General’s Office. (P2)

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