Singapore-based agribusiness giant Wilmar International Ltd. saw its shares plunge to a five-year low on June 18, 2025, after announcing a massive $729 million security deposit was handed over by its Indonesian subsidiaries ahead of a Supreme Court ruling. The case relates to palm oil export activities during Indonesia’s 2022 cooking oil shortage.
Shares of Wilmar International Ltd., a leading agribusiness group based in Singapore, tumbled to their lowest level in over five years after the company disclosed that several of its Indonesian subsidiaries had deposited IDR 11.9 trillion (USD 729 million) as a security measure tied to an ongoing legal case concerning palm oil exports.
Wilmar International operates across multiple regions, including Southeast Asia and China, and engages in the entire agricultural supply chain—from plantation to processing to distribution. The group plays a significant role in the global edible oils and palm oil market.
The financial disclosure, filed late on June 17, 2025, detailed that the deposit was requested by the Indonesian Attorney General’s Office (AGO) ahead of a Supreme Court ruling related to a 2022 cooking oil shortage scandal. The AGO is appealing a lower court ruling that previously favored Wilmar and two other palm oil trading firms.
The deposit, equivalent to nearly two-thirds of Wilmar’s net income in 2024, was made to demonstrate the “good faith and innocence” of the involved subsidiaries. However, the company warned that the amount may be partially or fully forfeited depending on the Supreme Court’s final verdict.
As of 10:30 a.m. Singapore time on June 18, Wilmar’s stock was trading at S$2.92, down nearly 3%, having fallen as much as 4% earlier in the day. The current share price hovers just above its 2020 lows.
The legal case stems from allegations during Indonesia’s 2022 domestic cooking oil shortage, where export permits were allegedly issued without meeting domestic distribution obligations. While a March 2025 ruling had cleared Wilmar’s units, the AGO appealed, and some judges involved in the earlier decision have since been detained on bribery suspicions.
Wilmar maintained in its statement that all export activities were conducted in line with existing regulations. The deposit, the company emphasized, is not an admission of guilt but a legal safeguard.
The market’s reaction underscores investor concern over both financial implications and reputational risk. The outcome of the appeal is expected to be closely watched across the regional agri-trading sector.
