Indonesia Probes Major Palm Oil Companies on Export Price Issues

Indonesia is probing some of the world’s biggest palm-oil companies for suspected export abuses, adding to the upheaval in the industry days after the government announced a plan to nationalize shipments of the crop.

Wilmar International Ltd.and Musim Mas Group are among 10 palm producers being probed for suspected under-invoicing and transfer pricing of exports, which are key concerns of President Prabowo Subianto, Finance Minister Purbaya Yudhi Sadewa told reporters in Jakarta on Tuesday. Under-invoicing is a practice in which the full value of exports isn’t declared, allowing profits to be shifted to lower tax jurisdictions.

The issues ...