Wilmar Hit with $709 Million Compensation Order as Indonesia’s Supreme Court Reverses Acquittals
Key Takeaways
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JAKARTA, Investortrust.id — Wilmar International Limited, the Singapore-based agribusiness giant, has been ordered by Indonesia’s Supreme Court to pay compensation totaling Rp 11.88 trillion, equal to $708.9 million, in a landmark decision reversing earlier acquittals for subsidiaries accused of misconduct during the country’s 2022 cooking oil crisis.
The ruling, issued on Thursday, Sept 25, 2025, came after an appeal by the Indonesian Attorney General’s Office against the acquittals of Wilmar, Musim Mas, and Permata Hijau subsidiaries. The Court concluded that five Wilmar entities had benefited unlawfully and must return profits, reimburse state financial losses, and cover damages incurred by businesses and households.
The affected subsidiaries are PT Multimas Nabati Asahan, PT Multi Nabati Sulawesi, PT Sinar Alam Permai, PT Wilmar Bioenergi Indonesia, and PT Wilmar Nabati Indonesia. Each was fined Rp 1 billion and collectively held liable for losses attributed to profiteering and supply manipulation.
According to Wilmar’s statement, the Rp 11.88 trillion has already been deposited with the Attorney General’s Office and will now be transferred to the State Treasury. The company warned it expects to report a net loss for the third quarter of 2025 as a result, though it still projects profitability for the full year ending December 31.
Wilmar emphasized that it may still challenge the verdict, noting in its statement that the group “may apply for judicial review of the Supreme Court’s decision.”
From Cooking Oil Shortage to Supreme Court Reversal
Indonesia’s palm oil sector has been under scrutiny since 2022, when a domestic shortage sent cooking oil prices soaring. The government imposed export restrictions to stabilize the local market, triggering allegations that major producers had manipulated licensing to prioritize overseas shipments.
In March 2025, a lower court acquitted several palm oil firms of wrongdoing. But in April 2025, the Attorney General’s Office arrested four judges and two lawyers, accusing them of accepting Rp 60 billion in bribes linked to the acquittals. A Wilmar employee was also arrested in connection with the export permit scandal.
By June 2025, prosecutors seized Rp 11.8 trillion from Wilmar subsidiaries, arguing it represented the scale of state losses. Wilmar denied misconduct but returned the funds under protest.
The Supreme Court’s decision in September 2025 validates the AGO’s case, making the earlier seizure legally binding and transforming the deposits into a permanent transfer to the Treasury.
Wilmar headquarters in Singapore. Photo: Courtesy of Wilmar
Market Implications
The size of the penalty represents one of the largest corporate liabilities imposed by Indonesian courts in recent years. While Wilmar emphasized that its actions were “in compliance with prevailing regulations and in good faith,” the ruling raises reputational concerns for investors and supply-chain partners.
As the world’s largest processor and merchandiser of palm oil, Wilmar plays a central role in global edible oil markets. The company’s warned of a Q3 loss, even if full-year profitability is preserved.
The ruling also carries environmental, social, and governance (ESG) consequences. The Roundtable on Sustainable Palm Oil (RSPO), of which Wilmar is a member, has stated it is waiting for the Court's written judgment to assess potential violations of sustainability principles.
"Accordingly, the RSPO will act within its mandate and jurisdiction to determine the necessary next steps to be undertaken," said in a statement on Thursday.
The case underscores Indonesia’s complex balancing act between consumer protection and export revenues. Palm oil is the country’s largest foreign exchange earner, yet cooking oil is politically sensitive as a staple for households.
The legal saga also highlights persistent concerns about judicial integrity. The arrest of judges and lawyers over alleged bribery linked to the original acquittals has raised the stakes, with the Supreme Court’s reversal signaling a more assertive stance against corruption.
For investors, the episode is a cautionary signal. While Wilmar may remain profitable overall, heightened legal and regulatory risks now surround the palm oil industry in Southeast Asia’s largest economy.