PALMOILMAGAZINE, JAKARTA – Three major corporations accused of illegal crude palm oil (CPO) exports, which contributed to a nationwide cooking oil shortage, are facing heavy legal consequences. The Public Prosecutor (JPU) has demanded that these companies pay a total compensation of IDR 17.7 trillion and that their business operations be shut down.
The charges were presented during a hearing at the Jakarta Corruption Court (Tipikor) on Monday (February 17, 2025). Quoted by Palmoilmagazine.com from detikcom, the companies involved are PT Wilmar Group, PT Permata Hijau Group, and PT Musim Mas Group. Each company faces different financial penalties based on the alleged illicit profits they obtained.
PT Wilmar Group, which consists of five subsidiaries, has been ordered to pay IDR 11.8 trillion in compensation and a fine of IDR 1 billion. If the company fails to pay within one month, its corporate assets will be seized and auctioned. Should the funds still be insufficient, authorities will confiscate the personal assets of Tenang Parulian Sembiring, the director representing the subsidiaries, and impose a 12-month prison sentence.
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Additionally, prosecutors have requested that all or part of Wilmar Group’s operations be shut down for one year as an additional penalty.
PT Permata Hijau Group (comprising five subsidiaries) has been ordered to pay IDR 937.5 billion in compensation and a fine of IDR 1 billion. Failure to pay within a month will lead to asset seizures and auctions. Its controlling director, David Virgo, faces 12 months in prison if the funds remain unpaid. The company is also at risk of a one-year business suspension.
PT Musim Mas Group (which has seven subsidiaries) faces IDR 4.8 trillion in compensation and a fine of IDR 1 billion. If unable to pay, assets belonging to company executives may be seized. Five company executives, including Gunawan Siregar and Rudi Krisnajaya, could face 11 months in prison if the seized assets do not cover the fine. Musim Mas Group is also being pushed for a one-year closure.
Background of the CPO Export Case
The case emerged amid a severe cooking oil shortage in Indonesia. Investigations revealed suspected manipulation in CPO exports, which led to skyrocketing prices. As the case unfolded, five individuals, including former Director General of Foreign Trade at the Ministry of Trade, Indra Sari Wisnu Wardhana, and several corporate executives, were found guilty.
Prosecutors allege that the three corporations illegally enriched themselves, causing economic losses amounting to trillions of rupiah. Wilmar Group is accused of unlawfully profiting IDR 1.6 trillion, while Musim Mas Group and Permata Hijau Group allegedly gained IDR 626.6 billion each.
With the trial still ongoing, the court’s final decision will determine the future of these three major palm oil companies in Indonesia’s industry. (P2)
