10 hours ago
- Business
- Malaysian Reserve
Wilmar posts US$729m security deposit amid Indonesian corruption appeal, PPB discloses
PPB Group Bhd has announced that its associate company, Wilmar International Ltd, has placed a security deposit of 11.88 trillion Indonesian rupiah (approximately US$729 million or RM3.44 billion) with the Indonesian Attorney General's Office (AGO), in connection with an ongoing court appeal involving five of its subsidiaries.
In a filing with Bursa Malaysia today, PPB, which holds an 18.8% interest in Wilmar, said the announcement was made by Wilmar on the Singapore Exchange following a press conference by the Attorney General of Indonesia on the same day.
The case stems from charges brought by the AGO in April 2024 against five Wilmar subsidiaries, namely PT Multimas Nabati Asahan, PT Multi Nabati Sulawesi, PT Sinar Alam Permai, PT Wilmar Bioenergi Indonesia, and PT Wilmar Nabati Indonesia, for allegedly causing financial losses to the state, making unauthorised profits, and harming the business sector during a domestic cooking oil shortage between July and December 2021.
The AGO claimed that the alleged actions led to total state losses of IDR12.3 trillion (about US$755 million), and subsequently appealed a Central Jakarta Court decision that favoured the Wilmar entities.
In its statement, Wilmar said the AGO requested the group to 'demonstrate their belief in the Indonesian judicial system and their good faith and innocence, by placing a security deposit' equivalent to part of the alleged losses and supposed illegal gains. The Wilmar subsidiaries have complied with this request.
Wilmar stated that the 'Security Deposit will be returned… if the Indonesian Supreme Court upholds the decision of the Central Jakarta Court, but may be forfeited, in full or in part… if the Indonesian Supreme Court finds against the Wilmar Respondents.'
The group reiterated: 'The Wilmar Respondents continue to maintain that all actions taken by them were taken in good faith and free from any corrupt intent.' — TMR
