Record seizure of 11.8 trillion rupiah from Wilmar marks Indonesia’s deepening crackdown on palm oil graft

[JAKARTA] The Indonesian authorities’ seizure of 11.8 trillion rupiah (S$928 million) from agri-giant Wilmar Group is not only the country’s largest asset confiscation, but also unprecedented for the company voluntarily handing the amount over in cash – a move legal experts say enables prosecutors to sidestep the complexities of liquidating seized property.

The move throws a spotlight on Jakarta’s stepped-up efforts to root out graft in the palm oil sector, following allegations of misconduct during a severe shortage of cooking oil in late 2021 to early 2022, which exposed governance lapses in one of Indonesia’s most vital industries.

Harli Siregar, the spokesperson for the Attorney-General’s Office (AGO), told The Business Times: “This was the largest seizure of funds in the history of ongoing cases.”