The Supreme Court of Indonesia has fined five Wilmar International’s subsidiaries IDR1 billion, and required them to pay a compensation of for state losses totalling IDR11.9 trillion ($930 million).
Wilmar says that as the total amount of IDR11.9 trillion has already been deposited by the five subsidiaries with the Attorney General’s Office (AGO), this amount will subsequently be deposited into the State Treasury.
The breakdown of the compensation is as follows — profits made by the five Wilmar subsidiaries amounting to IDR1.7 trillion, financial losses to the state amounting to IDR1.66 trillion, and losses in the business and household sector amounting to IDR8.53 trillion.
Wilmar International first submitted a security deposit of IDR11.88 trillion in May for “corrupt actions” carried out in 2021 during a shortage of cooking oil in the Indonesian market with the Indonesian AGO.
This was in response to the Indonesian 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 Indonesian Supreme Court overturned Wilmar’s acquittal on Sept 26.
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Wilmar says that it respects the decision of the Indonesian Supreme Court, it regrets that the Court has chosen to take this decision. It continues to maintain that the actions taken by its subsidiaries, during the period of a shortage of cooking oil in the Indonesian market, were done in compliance with prevailing regulations and in good faith.
Wilmar may apply for judicial review of the Supreme Court’s decision.
As a result of this penalty, Wilmar is expected to report a net loss for the 3QFY2025 ended Sept 30, but it still expects to be profitable for the full year.
Shares in Wilmar International closed 4 cents lower or 1.38% down at $2.85 on Sept 26.
