Indonesia's Attorney General's Office investigates alleged corruption within its palm oil fund agency. The probe, spanning 2015 to 2022, may impact both the biodiesel and feed sectors given palm oil's byproduct use in the feed industry.

Indonesia's Attorney General's Office is currently delving into a potential corruption case tied to the nation's palm oil fund agency. This organization is charged with the task of managing export levies on palm oil, a key commodity, with byproducts like palm kernel meal used in the feed industry. The ongoing investigation spans from 2015 to 2022, with 15 individuals having been interrogated as of now, according to an official statement released this past Tuesday.

At the core of the investigation are potential illegal practices associated with setting the monthly biodiesel price index in Indonesia. BPDPKS, as the palm oil agency is referred to locally, plays a vital role in accumulating levies from exports, given that Indonesia stands as the world's premier exporter of palm oil. The funds thus collected are channeled into initiatives like biodiesel subsidies and endeavors aimed at palm oil replanting.

The aforementioned biodiesel price index establishes the subsidy amount that biodiesel producers are eligible for.

Officials at BPDPKS have yet to issue a comment regarding the ongoing investigation.