US EditionIndonesia Firms in Palm Oil Fraud Probe Supplied Fuel Majors
The probe alleges palm oil was mislabeled as palm oil mill effluent to evade taxes, causing millions in lost revenue and affecting biofuel supply chains to major European companies.
- Last month, the Indonesian attorney general's office arrested 11 individuals, including customs officials, for allegedly defrauding the government between 2022 and 2024 by mislabelling taxable palm oil as palm oil mill effluent .
- The Indonesian government claims the scheme defrauded authorities of millions in revenue, since palm oil faces higher taxes than POME, a waste byproduct often used as a sustainable biofuel feedstock.
- Fuel majors including Eni and Neste received shipments from Green Product International, Surya Inti Primakarya, and Bumi Mulia Makmur, though both companies stated they had no direct contracts with the accused firms.
- An ISCC spokesperson said Surya Inti Primakarya is "currently excluded from recertification," while Eni reported its supplier "immediately suspended all operations with the companies involved in the investigation."
- Biofuels campaigner Cian Delaney of the NGO Transport and Environment argues verification is failing, as Ireland has ended incentives for POME-based biofuels and Germany plans to follow next year.
36 Articles
36 Articles
Indonesia: Fraud-suspected companies provided European producers of biofioul Admin FCE 16 Mar 2026 - 05:27 Indonesian companies under investigation for palm oil fraud provided European producers of biofioul, whose Italian energy giant Eni and Finnish Neste, revealed an investigation conducted by AFP and SourceMaterial.These revelations raise new questions about supply chains in the biofuels sector, believe experts and follow persistent allegatio…
Indonesian companies investigated for palm oil fraud (Symbolic image - AI generated) AI Generated Stock Image Indonesian companies suspected of massive palm oil fraud supplied major European biofuel producers, including Eni and Neste. The companies allegedly disguised palm oil as POME (palm oil mill effluent) to evade taxes and circumvent environmental restrictions. The Indonesian judicial system is investigating an alleged conspiracy between co…
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