16-6-2023 (JAKARTA) Indonesia’s attorney general’s office has launched a corruption investigation naming three palm oil companies as suspects. The companies are accused of misconduct in obtaining export permits during a period when palm oil shipments were being restricted.
This investigation follows a ruling by Indonesia’s Supreme Court, which upheld the conviction and imprisonment of executives from the implicated companies. The executives were found guilty of manipulating documents and providing false data to obtain export permits.
Indonesia, a major player in the global palm oil industry with a 60% market share, implemented strict export measures last year, including a temporary ban on shipments. These measures aimed to ensure sufficient domestic supply and stabilize soaring local cooking oil prices.
Prosecutors allege that the executives acted on behalf of their respective companies, namely Singapore-based Wilmar Group and Musim Mas Group, as well as Medan-based Permata Hijau Group. The investigation aims to recover state losses resulting from their actions.
Ketut Sumedana, spokesperson for the attorney general’s office, emphasized the need for accountability, stating, “Those three companies must be held responsible.”
At the time of reporting, the companies involved have not provided any immediate comments regarding the allegations.
In addition to the palm oil companies, a senior official from the Indonesian trade ministry has also faced legal consequences in connection with this case, having been sentenced to jail for abuse of power.
Furthermore, Indonesia’s anti-monopoly agency recently imposed fines on seven cooking oil companies for their role in restricting sales during a period of scarcity.
