RRI.CO.ID, Jakarta - The Indonesian Ministry of Industry has moved to clarify that the high-ranking official recently named as a suspect in a massive palm oil export corruption case had already been stripped of their authority weeks before the Attorney General’s Office (AGO) announcement. 

The case involves the alleged manipulation of Crude Palm Oil (CPO) exports, which were reportedly disguised as low-value waste to evade taxes and domestic obligations.

Ministry spokesperson Febri Hendri confirmed that the individual in question, identified in legal filings as LHB, the Head of the Sub-directorate for Non-Food Plantation Industry, was officially deactivated on January 8, 2026. 

This administrative move, finalized through Ministerial Decree No. 14/2026, was intended to ensure that the ongoing investigation by the AGO remained unimpeded by internal influence.

“Regarding the Ministry official mentioned in the reports, since they underwent examination several months ago, the Minister of Industry firmly deactivated the individual from all positions within the Ministry last month. This firm step was taken to facilitate the examination process and as a form of the Ministry's commitment to supporting the legal process,” Hendri stated on Wednesday, February 11, 2026, as quoted on the Ministry's official website.

The AGO’s investigation has uncovered a sophisticated scheme where CPO was allegedly reclassified as Palm Oil Mill Effluent (POME), a liquid waste product, to bypass the Domestic Market Obligation (DMO) and significantly reduce export levies. 

This reclassification is estimated to have caused state losses and lost revenue between IDR 10.6 trillion and IDR 14.3 trillion (approx. USD 680 million to USD 915 million).

LHB is among 11 suspects currently in custody, a group that includes senior Customs officials and several private sector executives. The Ministry has pledged full cooperation with investigators and will provide access to all necessary data to help dismantle the network responsible for the fraudulent exports.

"Going forward, the Minister of Industry will continue to strengthen internal oversight, improve the integrity and accountability of officials, and close loopholes for policy abuse as part of preventative measures to prevent similar incidents from recurring in the future," Hendri concluded. ***