One-stop CPO exports via DSI to guard state revenues: Deputy minister

Jakarta (ANTARA) - Routing crude palm oil (CPO) exports through PT Danantara Sumberdaya Indonesia's (DSI) single-window system is intended to protect State revenue rather than generate corporate profits, Deputy Agriculture Minister Sudaryono clarified.

Speaking in Jakarta, Friday, Sudaryono emphasized that the newly introduced mechanism aims to strengthen State oversight over Indonesia's most critical strategic commodity and eliminate widespread illicit practices that drain the national treasury.

"The government's goal is not to profit through DSI. No. The government's goal is to safeguard the state's rights," Sudaryono said, adding that law-abiding business operators should have no reason to oppose the scheme.

The policy shift is a direct response to systematic tax evasion and data manipulation within the palm oil export market, he explained.

The Agriculture Ministry, according to him, has identified practices currently used by non-compliant businesses to intentionally shrink their domestic financial obligations, including under-invoicing, underreporting and transfer pricing. These tactics have led to revenue leakages by reducing the taxes and other obligations owed to the state.

"What rights? The right to collect taxes and royalties. Because export quantities are manipulated and minimized through under-invoicing or transfer pricing... that is actually detrimental to us,” Sudaryono said.

To plug these revenue leakages, PT DSI will function as a centralized, transparent monitoring gatekeeper.

The system will provide the State with real-time, integrated, and accurate data to ensure all taxes, royalties and export levies are fully paid before shipments leave Indonesian ports.

While DSI tightens operations at the ports, the Agriculture Ministry will maintain its core focus on upstream management, specifically supervising production standards and stabilizing fresh fruit bunch (FFB) pricing, Sudaryono explained.

He noted that cleansing the downstream export chain is vital for grass-roots agriculture, as greater market transparency contributes to fairer and more stable prices for independent palm oil farmers.

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Translator: Muhammad Harianto, Yashinta Difa

Editor: M Razi Rahman

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