A Certificate of Origin (CoO) is more than a document proving where an exported product comes from. A study by Dani Nurmaliki and Rizqi Adhyka Kusumawati from Universitas Islam Indonesia (UII) found that the document plays an important role in reducing several export risks at PT Kilang Pertamina Internasional Refinery Unit II Dumai (PT KPI RU II Dumai). The study examined exports of Marine Fuel Oil (MFO), Low Sulphur Fuel Oil (LSFO), and Green Coke, focusing on how accurate and consistent origin documentation supports tariff preferences, product traceability, and payment through Letters of Credit.
Published in the Contemporary Journal of Applied Sciences (CJAS) in August 2026, the study shows that proper Certificate of Origin management can help exporters address three interconnected risks: dumping allegations, mis-declaration of origin, and operational risks related to Letter of Credit payment.
Why a Certificate of Origin Matters in International Trade
Exporting goods across borders creates opportunities for companies to expand markets and generate foreign-exchange earnings. At the same time, international trade exposes exporters to documentation, customs, operational, financial, and payment risks.
The researchers point to a 2009 case involving tires imported into Indonesia from China and India. The goods were accompanied by falsified Certificates of Origin intended to make them appear to originate from ASEAN countries. This allowed importers to seek a lower intra-ASEAN tariff rather than the higher non-ASEAN tariff.
The case illustrates why origin documentation is not simply an administrative formality. The accuracy of a Certificate of Origin can influence tariff treatment, customs compliance, and exposure to trade remedies.
In Indonesia, the Certificate of Origin is also known as the Surat Keterangan Asal (SKA). It confirms that goods meet applicable rules of origin and can serve as the basis for preferential tariff treatment under international trade agreements.
Study Focuses on PT KPI RU II Dumai
The researchers used a qualitative case-study approach at PT Kilang Pertamina Internasional Refinery Unit II Dumai.
The research was conducted within the company's Finance function during a three-month internship period from October to December 2025. The study examined Certificates of Origin and related export documents for MFO, LSFO, and Green Coke.
Primary information came from semi-structured interviews with staff in the Hydrocarbon Accounting and Budgeting sub-functions. Secondary information came from export documentation, internal company reports, and verification through the E-SKA and Indonesia National Single Window (INSW) systems.
The documents examined included:
- Certificate of Origin
- Bill of Lading
- Invoice
- Packing List
- Export Goods Declaration (PEB)
The researchers then mapped specific export risks against the functions performed by the Certificate of Origin.
Three Types of Certificate of Origin Are Used
The study identifies three forms of Certificate of Origin used by PT KPI RU II Dumai.
Form E is used for Green Coke exports to China under the ASEAN–China Free Trade Area (ACFTA). Its Indonesian-origin certification allows eligible shipments to receive reduced or eliminated import duties.
Form D is used for MFO and LSFO exports to ASEAN destinations such as Malaysia and Singapore under the ASEAN Trade in Goods Agreement (ATIGA). It enables qualifying shipments to receive reduced or zero intra-ASEAN tariffs.
Form B is used for destinations that do not have a preferential trade agreement with Indonesia. It does not provide a preferential tariff benefit, but it formally certifies Indonesian origin and can help prevent detention, additional inspection, or refusal of entry.
CoO Helps Protect Against Dumping Allegations
One major risk identified in the study is the possibility of dumping allegations.
Such allegations can arise when a destination country believes imported products are being sold at prices substantially below their normal domestic prices. For products such as MFO, LSFO, and Green Coke, allegations can lead to shipment holds, anti-dumping duties, export interruptions, and reputational consequences.
The Certificate of Origin helps establish where the products genuinely originate. It can also help prevent illegal transhipment, in which goods are routed through a third country and falsely declared as originating there to avoid duties or anti-dumping measures.
By providing verified origin information, the document gives destination customs authorities a basis for determining whether products genuinely originated in Indonesia rather than being rerouted from another country subject to trade restrictions.
Accurate Origin Information Reduces Mis-Declaration Risk
Another major concern is mis-declaration of origin.
For refinery products, an incorrect or questionable country-of-origin declaration can trigger additional inspections, detention, import refusal, administrative sanctions, financial losses, and disruption to export activities.
The researchers found that the Certificate of Origin helps address this problem by providing verified information about the exporter, production location, and product characteristics.
The study gives particular attention to Green Coke, which is produced only at the Dumai refinery and therefore receives greater scrutiny regarding its origin. The E-SKA and INSW systems further support the verification and traceability process.
The Certificate Can Also Affect Export Payments
Perhaps less obvious is the relationship between the Certificate of Origin and Letter of Credit (L/C) payments.
An L/C is a trade-finance mechanism in which a bank releases payment to an exporter when the required documents comply with the agreed terms. Because the Certificate of Origin can be one of the documents required for L/C disbursement, errors in the certificate can create direct financial consequences.
For example, discrepancies involving the product name, Harmonized System (HS) code, Bill of Lading, Invoice, or authentication can cause a bank to refuse payment.
Such discrepancies can result in payment delays, additional costs, and potential cash-flow problems for exporters.
Documentation Consistency Is Critical
The findings indicate that the effectiveness of a Certificate of Origin depends heavily on the consistency of information across export documents.
The CoO must correspond with documents such as the Invoice, Packing List, Bill of Lading, and PEB. When the information is accurate and consistent, the exporter is better positioned to demonstrate compliance to customs authorities and satisfy the documentation requirements of international payment arrangements.
The researchers therefore conclude that CoO management is not merely an administrative responsibility. It is directly connected to export compliance, competitiveness, customs clearance, and financial risk management.
Recommendations for Export Management
Based on the findings, the researchers recommend that PT KPI RU II Dumai strengthen the accuracy and oversight of Certificate of Origin issuance and verification.
The company should ensure that information in the Invoice, Packing List, Bill of Lading, and PEB remains consistent with the Certificate of Origin. The study also recommends stronger coordination among the functions involved in export activities and periodic evaluation of CoO management.
Improving employees’ understanding of international trade regulations and export procedures is also recommended to further reduce risks associated with dumping allegations, origin errors, and L/C payment problems.
Digitalization Could Strengthen Origin Verification
The researchers also identify an opportunity for future development through digital technology.
The study notes that blockchain and other digital systems could potentially improve the traceability and verification of trade documents, including Certificates of Origin. Future research could examine electronic or blockchain-based CoO systems in Indonesia's oil and gas sector, particularly their potential effects on verification speed, fraud reduction, and export risk mitigation.
This direction is particularly relevant as international trade becomes increasingly dependent on faster and more reliable digital documentation.
Study Has a Specific Scope
The authors acknowledge that the research has limitations. It is based on a single qualitative case, focusing on PT KPI RU II Dumai and the refinery products examined in the study.
As a result, the findings cannot automatically be generalized to all Indonesian exporters or all commodity sectors. The researchers recommend future quantitative research involving a larger number of exporting companies, as well as comparative studies across industries.
Author Profiles
- Dani Nurmaliki - Universitas Islam Indonesia.
- Rizqi Adhyka Kusumawati Universitas Islam Indonesia
Research Source
- Article Title: Certificate of Origin as an Export Risk Mitigation Instrument: Evidence from PT KPI RU II Dumai
- Authors: Dani Nurmaliki and Rizqi Adhyka Kusumawati
- Institution: Universitas Islam Indonesia
- Journal: Contemporary Journal of Applied Sciences (CJAS)
- Volume: 4, No. 8
- Publication: August 2026
- Pages: 801–816
- E-ISSN: 2986-2787
- DOI: https://doi.org/10.55927/cjas.v4i8.213
- URL: https://ntlformosapublisher.org/index.php/cjas
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