The company will provide a further update once the Court’s formal judgment and details of the award are issued.
Ahead of the judgment, Wilmar has already placed a "security deposit" of 11.9 trillion rupiah, or US$729 million with Indonesia's attorney general.
Besides Wilmar, two other Indonesian companies involved are the Permata Hijau Group and the Musim Mas Group.
According to Indonesian authorities, the actions of these companies caused losses to the government to the tune of US$755 million.
DBS, citing overhangs from this case, had already on Sept 2 lowered its target price from $3.80 to $3.
In its separate note, RHB Bank Singapore is not as upbeat, on worries that there is more to come.
"We are also wary that this could signal the way the Indonesian Government is leaning, with respect to other ongoing rice investigations on the group," says RHB, referring to a similar case involving another Wilmar unit.
See also: RHB raises DBS target price to $57.10 after bank’s stock hits new high
RHB is not making changes to its earnings estimates for now but has downgraded the stock from "neutral" to sell, along with a lowered target price of $2.50 from $2.75, to take into account earnings risks.
"While Wilmar maintains its innocence, we believe this outcome will result in a negative perception of the group and affect ESG sentiment. We also raise our conglomerate discount to 20% from 15% to account for the earnings risk," says RHB.
Wilmar is not the only Singapore-listed company in the spotlight of Indonesian authorities.
On Sept 21, XMH Holdings, which sells engines, says its Indonesia subsidiary PT Xin Ming Hua Engine has been slapped with a tax bill of 143.9 billion rupiah by local tax authorities, or nearly $10.94 million.
In its most recent FY2025 ended April, XMH reported earnings of just over $25.5 million.
As at 9.23 am, Wilmar shares dropped 3.11% to change hands at $2.80.
