He writes: “We estimate Wilmar’s Indonesia’s upstream oil palm plantation business makes up less than 5% of total group revenue.”
On the ongoing case, he points to an article by Indonesian online publication, Kompass, which highlights that legal proceedings involving Indonesian prosecutors and Wilmar and other Indonesian palm oil companies, Permata Hijau Group and Musim Mas Group have been carried out.
While these three companies have since been acquitted by Indonesia’s public prosecutor, there is an ongoing appeal by the attorney general’s office.
On this, Gan notes that this development follows the case of PT Duta Palma Group, which caused the state to suffer losses of IDR78 trillion.
Following this, the attorney general’s office is now investigating allegations of manipulation of palm oil plantations, with fines worth IDR300 trillion.
“We note that some of PT Duta Palma Group’s 222,000 hectare of oil palm land that was confiscated by the attorney general’s office was transferred earlier this year to Agrinas Palma Nusantara,” adds Gan.
As at 4.19 pm, shares in Wilmar are trading two cents lower or 0.68% down at $2.91.