Wednesday, 18 June 2025 16:53

Wilmar hands over US$725m ‘court security’ in Indo graft case

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Wilmar Group has announced it handed over 11.8 trillion rupiah to Indonesia's Attorney Generals' office as a security deposit in relation to a case about alleged misconduct in obtaining palm oil permits. Wilmar Group has announced it handed over 11.8 trillion rupiah to Indonesia's Attorney Generals' office as a security deposit in relation to a case about alleged misconduct in obtaining palm oil permits.

Reuters reports that giant food company Wilmar Group has announced it had handed over 11.8 trillion rupiah (US$725 million) to Indonesia's Attorney General's Office as a "security deposit" in relation to a case in court about alleged misconduct in obtaining palm oil export permits.

In New Zealand, Wilmar Group owns 100% of Agrifeeds. In 2020, Rural News reported that Fonterra – keen to exit non-core businesses like the PKE import business – offloaded its 50% stake in Agrifeeds to joint venture partner Wilmar International for NZ$27.5 million.

Indonesian prosecutors are appealing a court ruling that had cleared Wilmar and two other palm oil companies of accusation of paying bribes to obtain the permits in 2022. Prosecutors had demanded 11.8 trillion rupiah in fines from Wilmar.

Wilmar has been reported saying the money would be returned if Indonesia’s Supreme Court cleared the company of wrongdoing in the ongoing case but would be forfeited in part or in full if the court found against the company. 

Reuters also reports that the Indonesian Attorney General’s Office has arrested an employee of Wilmar “on graft charges related to corruption in obtaining export permits”. According to the news agency, the Office has also arrested four judges and two lawyers, alleging the judges took 60 billion rupiah to “arrange a favourable verdict against three companies, including Wilmar”.

Wilmar also said its actions in the palm oil export permit case were done “in compliance with prevailing regulations” and “were free from any corrupt intent”.

Immediately following the news, Wilmar shares dropped 4% to a five-year low during trading but recovered somewhat during the trading period.

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