Wilmar subsidiary’s general manager indicted over 2016 illegal sugar import scheme

The Attorney General’s Office of Indonesia has indicted the general manager of PT Duta Sugar International (DSI), a subsidiary of Wilmar International, for alleged involvement in an illegal sugar import scheme.

The case, which dates back to 2016, is estimated to have caused state losses of about IDR 578 billion (approximately US$36 million).

According to a disclosure made by Wilmar to the Singapore Exchange on 20 October 2025, eight other refined sugar producers have also been implicated in the case.

Together with DSI, these companies represent a significant portion of Indonesia’s refined sugar processing industry, which depends heavily on imported raw materials.

The controversy centres on claims by the nine sugar producers that their import activities were authorised by former Trade Minister Thomas Trikasih Lembong.

They allege that Lembong instructed them to collaborate with state-owned trading company Perusahaan Perdagangan Indonesia (PPI) to import raw sugar and distribute refined white sugar within Indonesia.

Lembong was formally named a suspect in October 2024.

Following a lengthy trial, he was convicted on 18 July 2025 and sentenced to four years and six months in prison, alongside a fine of IDR 750 million, or an additional six months’ imprisonment if the fine is unpaid.

Prosecutors alleged that Lembong’s granting of import permits had “unjustly enriched” the nine companies, providing them unfair advantages in sugar distribution.

Among the firms, DSI was reported to have held a security deposit of IDR 41.23 billion (approximately US$2.5 million).

In response to the ongoing proceedings, Wilmar stated that the company and other affected producers are pursuing the dismissal of their respective cases.

This follows the abolition granted to Lembong after his sentencing, which the companies argue should extend to them as they acted under ministerial direction.

Wilmar further clarified that the potential financial impact from the IDR 41.23 billion deposit “would not be material” to the group’s overall financial performance.

The agribusiness giant, headquartered in Singapore, operates one of the largest integrated agribusiness chains in Asia, with major interests in palm oil, sugar, and other commodities.

The indictment adds to Wilmar’s expanding list of legal issues in Indonesia.

In September 2025, the Supreme Court overturned a previous acquittal for Wilmar, Musim Mas Group, and Permata Hijau Group in a 2022 bribery case concerning palm oil export permits. That decision has renewed scrutiny on corporate compliance and transparency within Indonesia’s agribusiness sector.