Wilmar expects full-year profit despite Indonesian Court penalties

September 26, 2025 (MLN): Wilmar International Ltd will remain on track to deliver a full-year profit despite a hefty penalty imposed by Indonesia’s Supreme Court in a corruption case tied to palm oil exports.

The Singapore-based agribusiness giant disclosed on Friday (Sep 26) that it anticipates posting a third-quarter net loss after accounting for the sanctions.

The court ordered Wilmar to pay 5 billion rupiah (S$387,000) in fines and surrender 11.9 trillion rupiah in compensation, following a ruling that overturned an earlier acquittal in a graft case.

Five subsidiaries, Multimas Nabati Asahan, Multi Nabati Sulawesi, Sinar Alam Permai, Wilmar Bioenergi Indonesia and Wilmar Nabati Indonesia, were also fined one billion rupiah each.

The case stemmed from allegations that Wilmar and other palm oil producers, including Permata Hijau and Musim Mas, unlawfully profited during Indonesia’s 2021-2022 cooking oil shortage by circumventing export restrictions.

“The company regrets but respects the decision,” Wilmar said, adding that its units had acted in good faith and in line with prevailing rules during the period of tight supply.

Despite the setback, Wilmar’s chairman and CEO Kuok Khoon Hong increased his stake in the company. Separate filings showed that three investment vehicles linked to him, HPRY Holdings Ltd, Longhlin Asia Ltd and Hong Lee Holdings, acquired a total of 945,200 shares at S$2.838 apiece, worth S$2.7 million.

The purchases raised Kuok’s direct and indirect holdings to more than 896 million shares, representing a 14.4% stake.

Wilmar’s shares slumped as much as 3.8% to S$2.78 in intraday trading on Friday, their lowest level since January 2016, before closing down 1.4% at S$2.85.

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