Wilmar International and its subsidiaries have placed a security deposit of IDR11.9 trillion ($930 million) for “corrupt actions” carried out in 2021 during a shortage of cooking oil in the Indonesian market.
In April, the Indonesian Attorney General’s Office (AGO) brought 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.
The subsidiaries have maintained that all actions taken by them were done in good faith and free from any corrupt intent.
Shares in Wilmar Internationalclosed 1 cent lower or 0.331% down at $3.01 on June 17.
