The Indonesian Supreme Court has overturned the acquittals of Wilmar International and two other major palm oil groups in Indonesia, as part of an ongoing corruption case involving allegations of bribery to obtain palm oil export permits in 2022.
In May, Wilmar International submitted a security deposit of IDR11.88 trillion ($930 million) for “corrupt actions” carried out in 2021 during a shortage of cooking oil in the Indonesian market with the Indonesian Attorney General’s Office (AGO).
This was in response to the Indonesian Attorney General’s Office (AGO) bringing charges against five of Wilmar’s subsidiaries, Multimas Nabati Asahan, Multi Nabati Sulawesi, Sinar Alam Permai, Wilmar Bioenergi Indonesia and Wilmar Nabati Indonesia, for the harming of state finances, unauthorised profits and harming the business sector. The alleged actions took place during July 2021 and December 2021.
Later, the AGO submitted an appeal against the decision of the Central Jakarta Court to the Indonesian Supreme Court, requesting that the subsidiaries demonstrate their belief in the Indonesian judicial system and their good faith and innocence by placing a security deposit.
The security deposit will be returned to the subsidiaries of Wilmar if the Indonesian Supreme Court upholds the decision of the Central Jakarta Court, but may be forfeited in full or in part if the court finds against the subsidiaries.
Wilmar said in July that it denies allegations that it has sold adulterated rice.
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In its latest bourse filing on Sept 25, Wilmar said that it respects the decision of the Indonesian Supreme Court, and maintains that the actions taken by the Wilmar Respondents, during the period of a shortage of cooking oil in the Indonesian market, were done in compliance with prevailing regulations and in good faith.
Details of the grounds of judgement and final award amount have yet to be released, and will be known when the formal judgement of the Supreme Court is released.
Shares in Wilmar International closed 2 cents lower or 0.687% down at $2.89 on Sept 25.
