**Wilmar International Shares Hit Five-Year Low Amid Legal Challenges**
**Meta Description:** Wilmar International’s shares plummet as the company faces a $729 million security deposit demand related to a palm oil export case in Indonesia.
**URL Slug:** wilmar-international-shares-plummet-indonesia-case
**Headline:** Wilmar International’s Stock Falls to Lowest Point in Over Five Years Due to Legal Issues
Wilmar International Ltd., a major player in the Asian food industry, has seen its shares drop to their lowest level in more than five years. This decline follows the company’s announcement that several of its Indonesian subsidiaries are required to pay a substantial security deposit of $729 million ahead of a court ruling concerning a palm oil export case from 2022.
In a filing made late Tuesday, Wilmar disclosed that its subsidiaries have agreed to deposit the funds with the attorney general’s office in anticipation of an appeal by the AGO (Attorney General’s Office). The requested amount, approximately IDR 11.9 trillion, represents nearly two-thirds of the company’s net income from the previous year and is intended to demonstrate the companies’ “good faith and innocence” in the ongoing legal matter.
The company’s shares, which span operations from China to Southeast Asia, experienced a decline of up to 4% in Singapore trading. By around 10:30 a.m. local time, the stock was trading at S$2.92, reflecting a nearly 3% decrease and nearing its 2020 low.
This security deposit is tied to allegations made by the Indonesian AGO against five Wilmar units, accusing them of misconduct during a cooking oil shortage in the Indonesian market several years ago. Although an Indonesian court panel ruled in favor of Wilmar and two other palm oil traders in March, the AGO has challenged this verdict, leading to the detention of some judges on bribery charges.
Wilmar maintains that its subsidiaries acted in accordance with existing regulations regarding the export of cooking oil during the relevant period. The company stated that the security deposit would be refunded if the Indonesian Supreme Court upholds the earlier ruling; however, there is a risk that the funds could be partially or fully forfeited if the ruling is overturned.
The case, which involves a trade ministry official, centers on the approval of export permits that allegedly did not meet necessary requirements and the failure to fulfill obligations for domestic palm oil distribution, as noted by a government prosecutor at the time.
**FAQ Section**
**Q: What led to the decline in Wilmar International’s shares?**
A: Wilmar’s shares fell due to a legal requirement for its Indonesian subsidiaries to pay a $729 million security deposit related to a palm oil export case, which has raised concerns among investors.