The general manager of Wilmar’s Indonesian subsidiary, Duta Sugar International, has been convicted and sentenced by the Central Jakarta District Court to four years’ imprisonment and to a fine of IDR200 million.
This follows the Indonesian Public Prosecutor’s decision on Oct 20 to charge DSI, along with eight other refined sugar producers in Indonesia for carrying out “unlawful acts” relating to the import of raw sugar causing losses of IDR578 billion in 2016.
The nine sugar producers were required to place a security deposit totalling IDR65.34 billion ($44 million) with the Indonesia Attorney General, with DSI’s share worth IDR41.23 billion.
The security deposit of IDR41.2 billion placed by DSI with the Indonesian Attorney General has been forfeited and considered as restitution of DSI’s share of the alleged losses suffered by the country.
The other eight sugar producers have received similar custodial sentences.
Wilmar says that while it respects the decision of the court, it regrets that the case against the representatives of the nine sugar producers did not mirror the outcome of the corresponding case against the former Trade Minister, whose direction they had acted in accordance with, but whose case was abolished and halted.
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In a separate announcement, the company reported a net loss of US$347.7 million ($451.36 million) in 3QFY2025 ended Sept 30, as a result of an IDR11.9 trillion payment to the Indonesian Supreme Court after it overturned its acquittal on a graft case that took place in 2021.
However, core net profit improved 71.6% y-o-y to US$357.2 million for the quarter on the back of stronger operational results across all core segments, coupled with higher contributions from its joint ventures and associates.
Shares in Wilmar closed 2 cents lower or 0.637% down at $3.12 on Oct 30.
