[JAKARTA] Global palm oil company Wilmar Group has handed over 11.8 trillion rupiah (S$928 million) to the Indonesian authorities in the company’s ongoing fight against corruption charges tied to the country’s 2021 cooking-oil crisis.
The spokesperson for the Indonesian Attorney-General’s Office (AGO), Harli Siregar, said in a statement on Tuesday (June 17) that the seizure was part of the AGO’s drive to recover state losses stemming from acts of corruption tied to the issuance of export permits for crude palm oil (CPO) and their derivatives between January and April 2022.
The amount was determined following an audit of state losses and illegal gains involving five Wilmar subsidiaries: Wilmar Bioenergi Indonesia, Wilmar Nabati Indonesia, Multimas Nabati Asahan, Multi Nabati Sulawesi and Sinar Alam Permai.
Siregar added that the five defendants turned in the 11.8 trillion rupiah in compensation monies in late May.
“We hope this recovery will serve as an example for other corporations and parties currently facing legal proceedings to fulfill their obligations,” he said.
The announcement follows ongoing legal proceedings between Indonesian prosecutors and Wilmar Group, along with two other palm oil companies, Permata Hijau Group and Musim Mas Group. The case is now under review by the Indonesian Supreme Court.
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Wilmar Group, which has maintained that its respondents had been in compliance with the relevant regulations on oil export permits, was also ordered in a lower-court ruling in March to pay a fine of 1 billion rupiah, on top of the 11.8 trillion rupiah in compensation.
Siregar said the seized assets have been proposed as a consideration for the Supreme Court justices, who are now reviewing the lower court’s decision to ensure the law was correctly applied.
In its statement, Wilmar said the seized assets would serve as a security deposit that will be returned to the Wilmar respondents if the Indonesian Supreme Court upholds the court’s decision. But, it said, the assets may be forfeited in whole or in part, if the Supreme Court rules against the Wilmar respondents.
“The Wilmar respondents continue to maintain that all actions taken by them were taken in good faith and free from any corrupt intent,” the company said.
Chronology
The case, which also implicated a trade ministry official, focused on the approval of export permits that fell afoul of regulatory requirements, and the failure to meet domestic palm oil distribution obligations amid a cooking oil shortage in Indonesia between 2021 and 2022.
On Mar 19, the chief judge of the South Jakarta District Court acquitted Wilmar Group, Permata Hijau Group and Musim Mas Group of all criminal charges in a crude palm oil export corruption case.
In their ruling, the panel of judges acknowledged that the defendants had committed the actions presented by the public prosecutors. However, the actions did not amount to a criminal offence. As a result, the companies were found not guilty of both the primary and secondary charges.
However, in April, the AGO arrested a chief judge, a court employee and two lawyers on suspicion of graft. The judge was said to have accepted 60 billion rupiah in bribes to issue favourable rulings for three palm-oil companies, including Wilmar Group.
Despite the court’s decision to acquit the companies, the AGO said prosecutors had sought financial penalties, including the 1 billion rupiah fine and 11.8 trillion rupiah in compensation for state losses. The AGO also arrested an employee of Wilmar in connection with the case in April.
While it has received payment from Wilmar Group, the AGO did not disclose whether the other two corporate defendants, Permata Hijau Group and Musim Mas Group, have fulfilled their payment obligations.
Permata Hijau Group was fined 1 billion rupiah and ordered to pay 937 billion rupiah in compensation; Musim Mas Group was fined 1 billion rupiah and ordered to pay 4.8 trillion rupiah in compensation.
Additional reporting by Mia Pei
