Luhut Says 9 Million Hectares of Palm Oil Land Have Yet to Pay Taxes

Coordinating Minister for Maritime and Investment Luhut Binsar Panjaitan stated that many palm oil land owners have yet to pay their taxes. A total of 9 million hectares of land remain untaxed.

According to *CNN Indonesia*, Luhut obtained this data after requesting the Agency for the Supervision of Finance and Development (BPKP) to audit the governance of Indonesia's palm oil industry and plantations.

President Joko Widodo (Jokowi) appointed Luhut as the Steering Committee Chair for the Palm Oil Industry Governance Task Force.

(See also: [This is the 10 Largest Palm Oil Plantation Companies in Indonesia](https://databoks.katadata.co.id/datapublish/2022/04/25/dilarang-ekspor-ini-10-perusahaan-pemilik-kebun-sawit-terluas-di-ri))

Repeated audits revealed that palm oil land ownership permits total 20.4 million hectares, with 16.8 million hectares currently planted.

Luhut stated that 9 million hectares of palm oil land remain untaxed, while 7.3 million hectares have already paid taxes.

Luhut also conveyed these findings to Minister of Finance Sri Mulyani, and the Directorate General of Taxes is currently investigating the matter.

Luhut recommended to Jokowi that penalties be imposed on palm oil landowners who have not paid their taxes, rather than pursuing legal action.

Gapki's Response

The Indonesian Palm Oil Association (Gapki) responded to the BPKP and Luhut's findings. They believe all their members are compliant with tax payments.

Their reasoning is that proof of tax payment is a requirement for obtaining the Indonesian Sustainable Palm Oil (ISPO) certification.

"For companies, especially Gapki members who have obtained ISPO certificates or are in the process of obtaining them, it's difficult to be non-compliant with tax payments. Because one of the requirements for ISPO is proof of tax payment," said Eddy Martono, Gapki's Chairman, to *CNN Indonesia* on Tuesday (May 9, 2023).

(See also: [Jokowi Allows 11 Million Hectares of Land Concession, Largest for Mining](https://databoks.katadata.co.id/datapublish/2022/08/16/jokowi-izinkan-konsesi-lahan-11-juta-hektare-terbesar-untuk-tambang))