Indonesian prosecutors name three palm oil groups suspects in corruption case

Indonesia’s attorney general’s office has named three palm oil companies as suspects in a corruption investigation, alleging misconduct in obtaining export permits at a time when shipments were being restricted.

The investigation comes after Indonesia’s Supreme Court last month upheld a lower court’s jailing of executives at those companies for manipulating documents or submitting false data to obtain export permits.

Indonesia, which accounts for about 60% of the global palm oil supply, imposed tight export measures last year, including a three-week ban on shipments, to try to secure domestic supply to rein in soaring local cooking oil prices.

Prosecutors said the executives’ actions were on behalf of their companies, Singapore-based Wilmar Group and Musim Mas Group and Medan-based Permata Hijau Group and an investigation into the firms sought to recover state losses.

“Those three companies must be held responsible,” Ketut Sumedana, spokesperson for the attorney general’s office, said in a statement issued on Thursday (June 15).

Musim Mas Group on Friday said it respected legal proceedings and fully cooperated with the authorities. Wilmar Group said no official charges had been filed and the company had sought clarity on the issue.

Permata Hijau did not immediately respond to request for comment.

A senior Indonesian trade ministry official has also been jailed in the case for abuse of power.

Last month, Indonesia’s anti-monopoly agency fined seven cooking oil companies for restricting sales during the cooking oil scarcity period.