SGX:F34.SI:Wilmar International
SINGAPORE – Global agribusiness giant SGX:F34.SI:Wilmar International has paid 11.8 trillion rupiah (S$928 million) to the Indonesian authorities as part of its ongoing legal battle over alleged corruption linked to the country’s 2021 cooking oil crisis.
The compensation was handed over in late May by five Wilmar subsidiaries — Wilmar Bioenergi Indonesia, Wilmar Nabati Indonesia, Multimas Nabati Asahan, Multi Nabati Sulawesi, and Sinar Alam Permai — following an audit into illegal gains and state losses from the improper issuance of crude palm oil (CPO) export permits between January and April 2022.
According to Harli Siregar, spokesperson for Indonesia’s Attorney-General’s Office (AGO), the asset seizure forms part of efforts to recover state losses. He expressed hope that this would set a precedent for other companies facing similar legal proceedings.
The compensation follows a March 19 lower-court ruling that acquitted Wilmar, Permata Hijau Group, and Musim Mas Group of criminal charges. While the court acknowledged that the companies engaged in the actions described by prosecutors, it concluded that they did not constitute criminal offenses under Indonesian law.
Wilmar was also fined 1 billion rupiah in the same ruling. However, the AGO appealed the decision, and the case is now under review by the Indonesian Supreme Court, which will assess whether legal procedures were properly followed.
Wilmar stated that the seized assets will serve as a security deposit and may be returned if the Supreme Court upholds the lower-court decision. The company stressed that its actions were taken “in good faith and free from any corrupt intent.”
Meanwhile, shares of Wilmar International slipped 0.3% to S$3.01 on Tuesday.
The wider case has also drawn attention to alleged misconduct within Indonesia’s judiciary. In April, the AGO arrested a chief judge, court staff, and two lawyers for allegedly accepting 60 billion rupiah in bribes to issue favourable rulings for the three palm oil firms. A Wilmar employee was also arrested in connection with the investigation.
While Wilmar has fulfilled its payment obligations, the AGO has not confirmed whether Permata Hijau Group and Musim Mas Group have done the same. Permata was ordered to pay 937 billion rupiah in compensation and a 1 billion rupiah fine, while Musim Mas was ordered to pay 4.8 trillion rupiah in compensation and the same fine.
Wilmar has maintained its stance of zero tolerance for corruption, even as the legal and political fallout from the scandal continues to unfold.
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