Wilmar Indonesia unit general manager charged over sugar imports

[SINGAPORE] The general manager of Wilmar International’s Indonesian subsidiary has been charged by the Indonesian public prosecutor over carrying out unlawful acts related to the importation of raw sugar in 2016.

The unlawful imports had allegedly caused state losses amounting to 578 billion rupiah (S$45 million), said the company in a bourse filing on Monday (Oct 20).

The Duta Sugar International general manager is among representatives of eight other refined sugar producers in Indonesia who have been charged in the same case. The nine companies account for most of the country’s refineries that process imported raw sugar into refined sugar.

The producers maintain that they were acting under the direction of former trade minister Thomas Lembong, who instructed them to partner state-owned trading company Perusahaan Perdagangan Indonesia to import raw sugar and distribute refined white sugar to address a domestic sugar shortage in 2016.

Lembong was subsequently arrested in October 2024 and charged by the Indonesia Attorney-General for violating the relevant trade regulation.

The attorney-general claimed that in approving import permits, Lembong had “helped to enrich” the nine sugar producers, causing an alleged total state loss of 578 billion rupiah. Duta Sugar International accounts for 7.8 per cent, or 45 billion rupiah, of the total alleged losses.

It also noted that profits made by the nine sugar producers should have gone to the state-owned company.

Lembong was found guilty on Jul 18, 2025, and was sentenced to four years and six months’ imprisonment and fined 750 million rupiah. He was also given a subsidiary penalty of six months’ imprisonment if the fine was not paid.

Representatives of the nine sugar producers have been detained and charged. The companies were required to place a combined security deposit of 565.34 billion rupiah with the attorney-general.

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Duta Sugar International’s share of this deposit was 41.23 billion rupiah, said Wilmar.

But the legal processes related to the sugar import case against Lembong were halted, following a presidential decree granting him abolition.

Consequently, the representatives of the nine sugar producers have argued that their case should be dismissed. The case is now pending the court’s decision. Wilmar said it will provide further updates once a ruling is made.

Wilmar also said that the financial impact of the 41.23 billion rupiah deposit paid by Duta Sugar International, if forfeited, would not be material to the company’s financial performance.

Shares of Wilmar ended last Friday 0.7 per cent or S$0.02 higher at S$2.95, before the announcement.