Wilmar confirms Indonesian subsidiary executive charged in sugar import case

Authorities allege losses of $45.1m.

Wilmar International Limited said that the general manager of its Indonesian subsidiary, P.T. Duta Sugar International (DSI), has been charged by the Indonesian Public Prosecutor along with representatives of eight other sugar producers for alleged unlawful acts related to raw sugar imports.

The charges claim the companies caused state losses of $45.1m (IDR578b). Together, the nine producers account for most of Indonesia’s refined sugar production.

Wilmar said the producers were acting under a 2016 directive from then Trade Minister Thomas Lembong, who instructed them to work with state-owned P.T. Perusahaan Perdagangan Indonesia (Persero) to import raw sugar and distribute refined sugar to address a domestic shortage.

Lembong was arrested in October 2024 and charged with violating trade regulations. Prosecutors said his approvals benefited the sugar producers and caused the alleged losses. DSI’s share was estimated at $3.5m (IDR45b).

In July 2025, Lembong was sentenced to four years and six months in prison and fined $58,600 (IDR750m). The case was later halted after a Presidential Decree granted him abolition.

Following this, the nine producers’ representatives, including DSI’s General Manager, were detained and charged. They were required to place a total deposit of $44.1m (IDR565.34b), with DSI contributing $3.2m (IDR41.23b).

The companies argue the case should be dismissed, as they acted under the former minister’s directive and his case has been closed. The court’s decision is pending.

Wilmar said the potential loss of DSI’s US$2.5m deposit would not be material to the group’s finances and confirmed it is supporting DSI’s general manager and his family.

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