Article

Indonesian companies involved in a palm oil fraud investigation supplied European firms Eni and Neste, allegedly mislabelling palm oil as palm oil mill effluent (POME) to evade taxes. This fraud has cost the Indonesian government millions, with authorities arresting 11 individuals, including customs officials, for their roles in the scheme from 2022 to 2024.

Both Eni and Neste, having removed palm oil from their supply chains, received shipments labelled as POME from implicated companies. The investigation highlights significant oversight issues in the biofuel sector, prompting calls for improved verification standards.