Archive · 18 Jun 2025
Wilmar Shares Tumble After Indonesia Palm Oil Case Deposit
Imagine a big food company called Wilmar that sells things like cooking oil.
The company had to pay a huge amount of money, like a deposit, in Indonesia.
This is because of a court case about palm oil exports a couple of years ago.
The government wants the money to make sure Wilmar will follow the rules.
If the company wins the case in the end, they will get the money back.
But, if they lose, they might not get all of it back.
Because of this, people who own shares of Wilmar are a bit worried, and the value of the company went down.
Wilmar International's shares plummeted after its units in Indonesia made a $729 million security deposit.
The deposit was requested by Indonesia's Attorney General's Office (AGO) related to a 2022 palm oil export case.
The AGO is appealing a prior court ruling that favored Wilmar.
The deposit, totaling IDR 11.9 trillion, represents nearly two-thirds of Wilmar's net income from the previous year.
The deposit will be returned if the Indonesian Supreme Court upholds the initial ruling; otherwise, it could be forfeited.
- Who
- Wilmar International and the Indonesian Attorney General's Office (AGO).
- What
- Wilmar International's subsidiaries made a $729 million security deposit related to a palm oil export case.
- When
- The deposit was made recently, following an exchange filing late Tuesday.
- Where
- In Indonesia and Singapore.
- Why
- To demonstrate good faith in a case concerning palm oil exports and pending a court ruling.
Wilmar's Position
AGO's Position
Compliance with Regulations vs. Alleged Wrongdoing
Wilmar's Position
Wilmar states that its actions related to cooking oil exports were in compliance with regulations.
AGO's Position
The AGO and the government previously accused Wilmar units of wrongdoings in cooking oil distribution during a shortage.
- Company
- Wilmar International Ltd.
- Deposit Amount
- $729 million (IDR 11.9 trillion)
- Reason for Deposit
- Security deposit for a palm oil export case.
- Court Ruling
- Initial ruling favored Wilmar, under appeal.
- Share Drop
- Up to 4% in Singapore
- Potential Outcome
- Deposit returned if Wilmar wins, forfeited if Wilmar loses