Indonesian Palm Oil Fraud Probe Involves Eni and Neste Supply Chains
An investigation into Indonesian companies linked to palm oil fraud has revealed connections to European firms Eni and Neste. Authorities allege that local companies mislabelled palm oil as the waste byproduct POME, defrauding the government of tax revenue. Eni and Neste, having removed palm oil from their supply chains, received shipments falsely described as POME. Eleven individuals, including customs officials, were arrested for their involvement in the scheme, which raises concerns about biofuel supply chain integrity.
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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.
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